Bitcoin Price Falls to $111,856 After Whale Sells 24,000 BTC

Key Takeaways

• Bitcoin Price faces resistance at $117K and risks a September correction toward $100K.

• Federal Reserve signals drive volatility, keeping traders cautious.

• Bitcoin ETFs and MicroStrategy continue fueling long-term institutional demand.

Bitcoin price trades at around $111,856, touching an intraday low while showing a decline of about 2.6% from its previous close. The intraday high reached $115,026, reflecting volatility within a short timeframe.

On other major platforms, BTC shows similar numbers. CoinMarketCap reports a price near $112,027, down 2.56%, with a total market value of about $2.23 trillion. Around 19.91 million BTC are in circulation. CoinDesk shows Bitcoin at $112,094 as of August 25, 2025. These numbers highlight how the price remains locked between $111,000 and $115,000 with no clear breakout.

Key Drivers of the Drop

The market faced a sudden shock when a whale sold about 24,000 BTC, triggering a flash crash. This heavy sell order came shortly after Federal Reserve Chair Powell hinted at future interest rate cuts. The dovish tone gave markets a brief push upward, but the whale action erased gains within hours. Options markets showed stress as traders hedged against more volatility.

Earlier in the week, Bitcoin price slipped below $113,000, a level that marked a six-week low. Despite expectations of easier Fed policy, the asset traded around $112,550, down 2.1%. Resistance near $117,000 has capped attempts to rally higher. Whales appear to take profits whenever prices near this barrier, while inflows into Bitcoin ETFs have cooled after strong activity earlier this year.

Cautious investor sentiment also played a role. Mixed signals from the Federal Reserve have confused markets. While Powell hinted at a cut, other policymakers warned against quick moves because inflation remains sticky. As a result, traders turned defensive, leading it to test lower levels.

Institutional Moves and Whale Influence

Institutional interest continues to shape the market. Strategy, previously known as MicroStrategy, announced plans for its third Bitcoin purchase in August. The firm already bought 430 BTC on August 18 for about $51.4 million. Its total holdings now stand at 629,376 BTC, worth more than $72 billion. Such large holdings by a single institution show confidence in Bitcoin’s future role as a reserve asset.

At the same time, old whales from the early days of Bitcoin influence the price in another direction. These “OG whales” hold coins mined around 2011. When they sell in large amounts, the market struggles to absorb the pressure, which slows price growth. Their actions keep short-term rallies from building momentum.

Cycle and Market Structure

Analysts continue to study Bitcoin’s long-term cycle patterns. On-chain analytics firm Glassnode points out that current activity looks similar to past four-year cycles. In those cycles, BTC often saw strong rallies in the year after its halving event, followed by corrections before new highs. The current pattern suggests a possible continuation of the late bull phase.

Other research groups present a more extended timeline. Analysts at Bernstein believe this bull run could last until 2027, breaking from the traditional four-year rhythm. They are making a Bitcoin price prediction as it could reach $200,000 in the next 6–12 months if strong regulation and institutional adoption continue. Their case includes U.S. policies like the Genius Act, SEC initiatives, and the possibility of a federal reserve.

However, not all experts agree. Some expect a more modest outcome, with prices topping between $140,000 and $150,000 by late 2025. They argue that previous cycles show natural limits, and institutional demand alone may not double the price from current levels. Others warn about a September correction, pointing out price patterns that look similar to the crash in 2021.

Also Read - Bitcoin Price Faces Heavy Obstacles on its Recovery Journey

Impact of Fed Policy and Global Economy

Macroeconomic forces still control the short-term direction. Powell’s speech at the Jackson Hole meeting boosted investor appetite for risk. Bitcoin briefly climbed toward $116,500, while stocks linked to crypto also jumped. The market took this as a sign of easier conditions ahead.

But other Fed statements tell a different story. Officials noted that inflation has not cooled enough for deep cuts, and they warned that lowering rates too fast could harm the economy. This split in messaging fuels uncertainty. Investors know that Bitcoin reacts quickly to shifts in monetary policy because traders see it as a hedge against traditional financial risks.

Global markets also add pressure. Energy prices remain high, trade tensions continue, and stock indexes swing daily. In such conditions, it behaves both as a risk asset and as a hedge, creating mixed flows that add to volatility.

Technical Levels and Market Sentiment

Traders focus on clear levels. Resistance at $117,000 continues to block upside momentum. Buyers step in around $114,600–$115,500, but repeated failures above this band make the market cautious. If sellers break the $114,000 line, it could retest support closer to $110,000.

The flash crash over the weekend increased fear. Options data shows more traders hedging against sudden drops, which reflects a bearish sentiment. Still, strong demand appears whenever Bitcoin dips near $110,000, showing that long-term investors buy the weakness.

On August 25, Bitcoin traded at $113,431, down 1.64%, with trading volumes rising. High volume during a decline often signals strong participation from both sides, but in this case, it underlines the selling pressure.

Short-Term Outlook

In the next few days, Bitcoin will likely move inside the $110,000 to $117,000 range. Bulls need to break above $117,000 to push toward $120,000, while bears look for a break under $112,000 to pull prices toward $110,000. If macro data shows inflation easing, markets may gain confidence for a rebound. If Fed commentary sounds hawkish, Bitcoin could slide further.

Medium-Term Projections

Over the next two to three months, traders expect two possible paths. If the Fed signals steady rate cuts, Bitcoin could rise toward $120,000. Optimism from institutions like Strategy also strengthens this case. On the other hand, analysts warning of a September correction believe a drop to $100,000–$105,000 remains possible. In that case, a deeper pullback could shake short-term investors while giving long-term buyers another entry point.

Long-Term Vision

Looking out to 2025–2027, projections spread widely. Optimistic scenarios place Bitcoin between $140,000 and $200,000, supported by regulation, ETF flows, and federal involvement. More cautious estimates keep the ceiling closer to $150,000, matching earlier cycles where growth slowed after a major rally.

Institutional buying, whale activity, and policy changes will decide which path wins. If global markets face major shocks, Bitcoin could also gain from its reputation as digital gold.

Also Read - Bitcoin vs. Altcoins: Key Lessons from the Latest Crypto Crash

Final Thoughts

Bitcoin remains locked in a tense range with strong resistance at $117,000 and firm support near $110,000. Whale activity and institutional moves create sharp swings. Fed policy continues to set the tone, with every speech from central bankers sparking new reactions.

In the short term, traders prepare for more volatility. In the medium term, September could bring either a breakout or a correction. In the long run, Bitcoin still shows potential for record highs, but growth depends on both global economic shifts and investor confidence.