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Bitcoin faced renewed selling pressure over the weekend, falling to $112,700 as large holders continued migrating funds into Ethereum. The drop comes after a short-lived rally triggered by U.S. Federal Reserve Chair Jerome Powell’s dovish speech at Jackson Hole, which briefly pushed the cryptocurrency above $117,000 before momentum quickly faded.
Powell’s Comments Fail to Sustain Rally
On Friday, Powell hinted at the possibility of an interest rate cut in September, sparking optimism across risk markets. Bitcoin reacted with a sharp upward move, reclaiming levels above $117,000. However, analysts noted that the rally was built on fragile footing.
“Bitcoin’s spike after Powell’s speech was driven by thin liquidity, not lasting conviction,” explained Kronos Research CIO Vincent Liu. “Once leverage unwound and no fresh catalysts emerged, momentum quickly faded, leaving BTC back below key levels.”
Market participants said traders were forced to recalibrate after the rally proved unsustainable. Nick Ruck, director at LVRG Research, described the retracement as a “market recalibration,” with broader uncertainties overshadowing Powell’s dovish tone.
Whale Movements Add Selling Pressure
The biggest factor weighing on Bitcoin appears to be the movements of large holders. Reports circulating on social media suggest a single whale sold more than 24,000 BTC in recent days, triggering what some described as a “flash crash.”
According to screenshots shared by WhaleWire CEO Jacob King, a wallet identified as “19D5J…WoZ1C” executed multiple transactions between August 16 and 24, transferring between 3,000 and 6,000 BTC at a time. King said the selling cascade not only pushed Bitcoin lower but also triggered panic among smaller traders.
“Once the whale started selling, it triggered a panic cascade, with other traders selling too, amplifying the crash,” King explained. “Most of the money is being moved into Ethereum, with around $2 billion bought and $1.3 billion staked.”
Still, Liu from Kronos Research urged caution in attributing the entire move to one wallet. “It’s more likely the work of multiple whales or an exchange with significant holdings, rather than a single entity,” he said, noting that large-scale institutional players often coordinate transactions of this nature.
Bitcoin to Ethereum Rotation Gains Momentum
The shift from Bitcoin to Ethereum is becoming increasingly visible in both on-chain data and institutional flows. Last week, blockchain analytics firm Lookonchain reported that a whale wallet converted part of its 100,784 BTC into 62,914 ETH while also building a 135,265 ETH derivatives long position.
This move reflects a broader trend of high-value holders diversifying away from Bitcoin and into Ethereum. Spot ETFs have mirrored this pattern, with ether ETFs seeing stronger inflows in August compared to relatively muted flows in Bitcoin ETFs.
“With ETH ETF staking approval on the horizon, expect increased staking activity and potential altcoin outperformance,” said Liu. “Ethereum is poised to take center stage.”
Ruck from LVRG Research echoed the sentiment, suggesting that whales may see Ethereum as offering stronger upside potential, particularly with the network’s growing corporate reserves and staking opportunities.
Bitcoin Dominance Declines
Bitcoin’s market dominance has slipped noticeably in recent weeks. At the beginning of August, BTC commanded roughly 61% of the total crypto market. That figure has now fallen to 57.94%, underscoring the rotation into Ethereum and other altcoins.
Meanwhile, Ethereum has been climbing steadily, reaching a new all-time high last Friday above $4,946 before consolidating around $4,712. Traders believe Ethereum’s resilience, coupled with positive ETF developments, could keep capital flowing in its direction even as Bitcoin faces outflows.
Short-Term Outlook: Volatility Ahead
Despite the recent drop, analysts caution against ruling Bitcoin out in the short term. With critical macroeconomic data due this week, including Thursday’s U.S. jobless claims report, volatility is expected to remain high.
“Markets will stay reactive to macro headlines,” Liu said. “If jobless claims rise sharply, expectations for a September rate cut will strengthen, which could provide some relief for Bitcoin and risk assets more broadly.”
Still, sentiment has clearly shifted in favor of Ethereum, leaving Bitcoin vulnerable to further downside if selling pressure continues. For now, the $112,500–$113,000 zone is acting as a key support range, with traders closely watching for signs of either stabilization or another leg lower.
Conclusion
Bitcoin’s slip to $112,700 highlights a crucial shift in market dynamics. While Powell’s dovish tone initially sparked optimism, whale selling and ongoing rotation into Ethereum quickly reversed those gains. With Bitcoin dominance weakening and institutional flows favoring ETH, the crypto market appears to be entering a new phase where Ethereum takes on a larger share of investor attention.
As traders prepare for a week of macroeconomic data, both Bitcoin and Ethereum are likely to remain volatile. But for now, the story of whale migration and institutional reallocation continues to weigh on Bitcoin, even as Ethereum gains ground.
