The cryptocurrency market on Monday, August 25, 2025, experienced sharp fluctuations after a sudden drop in the price of Bitcoin, leading to a wave of massive liquidity and a shift in investor sentiment.
🔻 Bitcoin experiences a quick collapse (Flash Crash)
• The price of Bitcoin (BTC) unexpectedly dropped by more than 3% within minutes, falling from $114,800 to around $111,000.
• This rapid drop led to liquidations exceeding $550 million in derivatives positions, creating additional pressure on the market.
• Despite the rapid decline, technical analysis indicators show that the current support at $110,000 could be a potential bounce point.
🚀 Ethereum achieves a new historical peak
Unlike Bitcoin's movement, Ethereum (ETH) continued its strong performance reaching $4,950 as its all-time high.
• The cryptocurrency recorded a weekly increase of nearly 9%, reflecting investor interest in increasing positions in alternative assets.
• This performance may be an early signal of the start of altcoin season, as liquidity gradually shifts from Bitcoin to Ethereum and other emerging coins.
📊 Market Sentiment: Neutral and Cautious
• The Fear & Greed Index has dropped to 47, reflecting a neutral state with a slight tendency towards caution among traders.
• Large investors (whales) are still in a monitoring position, while short-term traders benefit from high volatility.
🔮 What's next?
• Continued selling pressure on Bitcoin may open the door for further declines towards lower support levels.
• Conversely, if Ethereum maintains its momentum above $4,800, we may see a larger push towards altcoins with strong projects.
• Traders are required to act cautiously, with strict risk management and diversification of investment portfolios.
📝 Summary
Today's cryptocurrency market reflects a critical transitional phase:
• Bitcoin in a defensive position after a sudden 'flash crash'.
• Ethereum leads a new upward wave towards historical levels.
• Caution is required, but opportunities exist especially in the altcoin sector.