$BTC $ETH
Causes of the Decline in BTC, ETH, and XRP Prices
1. Whale Selling & Sudden Flash Crash
A “whale” (large holder) moved and sold about 24,000 BTC, including large transactions through the Hyperunite platform, suddenly causing a flash crash in the market. This triggered large liquidations of long positions, pushing Bitcoin's price down to $111,000 before slightly recovering.
Liquidations also hit Ethereum, with total liquidations exceeding $550 million, including $216 million from ETH and $238 million from BTC.
2. Profit Taking and Post-Rally Correction
After a rally triggered by dovish comments from The Fed Chair, Jerome Powell, many investors took profits. BTC, ETH, and XRP then experienced a correction due to sell-offs at profit levels.
XRP was particularly affected by profit-taking post-rally, along with additional pressure from general market volatility and macroeconomic uncertainty.
3. Macro Uncertainty and Market Sentiment
Investors are awaiting signals of the latest monetary policy, especially from Powell's speech at the Jackson Hole conference. This action sparked temporary optimism but was followed by selling as the policy remains unclear.
One analysis also noted tension between hopes for interest rate cuts and inflation/tariff pressures, causing market hesitation.
4. Thin Liquidity & Speculative Impact
A large sell-off by a whale in a low liquidity market triggered a chain reaction, leading to more margin liquidations and sharp price pressure.
Panic retail sentiment and social media further exacerbated the pressure by pushing automatic sell algorithms.