Although Bitcoin had sustained impressive gains earlier in 2025, the digital asset experienced a pronounced downturn between August 1 and 3, as significant selling pressure from large whale holders coincided with broader macroeconomic uncertainties. During this period, Bitcoin’s price slipped below $113,000, a decline driven mainly by the liquidation of approximately 80,000 BTC by whale entities. This substantial sell-off exacerbated market volatility, triggering over $1 billion in liquidations across Bitcoin and Ethereum within a single day, and signaling a shift in institutional trading dynamics that heavily influenced mid-2025 price movements. Recent data also show the awakening of dormant whale wallets, which may have contributed to the increased selling pressure.
Bitcoin’s sharp August dip was driven by whale sell-offs and macroeconomic uncertainties, sparking massive liquidations and volatility.
Concurrently, whale activity manifested through increased exchange deposits, with over 12,000 BTC transferred to exchanges in just one week—the highest volume since November 2024. This spike in exchange reserves, which rose to 2.43 million BTC by early August, typically prefaces periods of profit-taking, as historical trends suggest that large transfers above 10,000 BTC often precede a 7 to 14-day market correction. Declines in mega whale addresses holding more than 10,000 BTC, together with offloading by whales possessing 1,000 to 10,000 BTC, intensified downward pressure, reflecting a coordinated unwinding of large positions. Moreover, technical analysis shows Bitcoin locked in a weekly bearish SFP, a pattern that historically triggers market reactions 15 times in 15 years.
Technical indicators corroborated the bearish sentiment. The emergence of a double-top pattern indicated a potential reversal, with projections pointing to a price drop below $95,000 by September. The 50-day Exponential Moving Average near $94,750 represented a critical support threshold, while momentum oscillators such as the MACD and RSI turned negative, underscoring weakening upward momentum. additionally, breaches of key Fibonacci retracement levels amplified selling activity, as automated trading systems accelerated liquidations, including $81 million in long positions during the recent decline.
Market sentiment shifted accordingly; the Crypto Fear and Greed Index moved from greed to neutral, mirroring growing investor caution. Institutional investors exhibited conflicting behaviors, oscillating between pump-driven buying and profit-taking, though bearish forces remained dominant. ETF net flows reversed sharply in mid-August, with outflows approaching $17 million, compounding concerns about market capacity to absorb renewed whale selling amid softening demand. Despite these pressures, Bitcoin’s price resilience during July’s heavy long-term holder sell-offs suggested nuanced dynamics in play, reinforcing the complexity of factors influencing this downturn.
