A troubling signal is echoing in the crypto world from Jacob King, CEO of the analytical platform WhaleWire, which specializes in monitoring whale transactions. King stated that Bitcoin is inevitably facing a crash caused by a combination of factors: excessive leverage, mass whale withdrawals, and lack of support from the US government. 'Bitcoin is heading for a fall. A critical event occurred recently,' he wrote in his X post, referring to key narratives that fueled the bubble.
According to King, the main driver of growth $BTC is the illusion of mass Bitcoin purchases by the US government. However, Treasury Secretary Scott Bessent admitted on air that reserves will not be replenished with crypto. Without new 'fuel,' the market is vulnerable: centralization, whale emigration, and Washington's indifference make it fragile. Tether, the main price manipulator, can only support quotes for a limited time. 'The crash is just a matter of time,' emphasized the analyst.
This statement came against the backdrop of a recent flash crash: on August 24, a whale sold 24,000 BTC for $2.7 billion, causing a drop of $4,000 within minutes. According to WhaleWire, this triggered a cascade of panic, with a rotation of funds into Ethereum ($2 billion bought, $1.3 billion staked). Bitcoin fell to $110,500, with RSI-7 at 40.72 indicating oversold conditions, but with no reversal signals. Willy Woo from Bitcoiner notes that the supply of BTC is concentrated among old whales from 2011, who need $110,000+ of new capital per coin to absorb sales.
Furthermore, King criticizes Michael Saylor from MicroStrategy for diluting shareholder equity: the company canceled the 2.5x mNAV threshold to issue shares below value to buy BTC, undermining trust and increasing selling pressure. Excessive leverage makes the market vulnerable: a 1% drop in BTC wiped out $360 million in liquidations, and a significant crash could be catastrophic.
Experts are divided: some see healthy monetization in corrections, with a potential rebound above $113,500. But King warns: the bubble will burst, advising caution. The cryptocurrency market is evolving, but risks are increasing — watch the on-chain data.
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