Bitcoin Drops Below US$110K Amid Whale Selling and Market Liquidations

Bitcoin has slipped to its lowest levels in nearly two months, briefly trading under US$109,000 before recovering slightly. The move follows the sale of 24,000 BTC—worth over US$2.7 billion—by a large holder, sparking widespread liquidations across the market.

At the time of writing, Bitcoin sits at US$110,185, down 11% lower than its mid-August all-time high of US$124,533. The selloff has erased almost $200 billion from the broader crypto market.

Several factors combined to drive this pullback:

1. Whale Selling Pressure
A single whale transaction over the weekend triggered a flash crash. The sale represented one of the largest single-day disposals this year, quickly overwhelming thin liquidity.

2. Technical Breakdown
Bitcoin fell below the 100-day moving average, which is a level it had held since April.

3. Overleveraged Traders Squeezed
The sudden move forced the liquidation of more than US$900 million in positions across crypto derivatives markets. Over 90% of those were longs betting on higher prices.

4. Fragile Market Structure
ETF outflows and quieter on-chain activity left order books thin, making the market more vulnerable to sharp moves.

5. Seasonal Weakness
September has historically been a weak month for Bitcoin, with average negative returns even during bull markets.

On the upside, recovery above US$117,000 would be an early signal that bulls are regaining control.

Ethereum (ETH) fell 8% in the past day but remains technically stronger than Bitcoin, holding above its key moving averages. XRP and Solana also held better ground.

While retail traders have been caught in the downturn, institutional players continue to accumulate. Firms like MicroStrategy, already holding more than 628,000 BTC, have shown ongoing conviction in Bitcoin’s long-term trajectory.

Upcoming U.S. economic data such as GDP, unemployment claims, and inflation figures may provide near-term relief. Softer data could reignite demand for crypto as a hedge against slowing growth.

Bitcoin’s latest dip underscores the mix of volatility, leverage, and thin liquidity that continues to shape the market. While short-term risks remain, institutional accumulation and structural adoption trends suggest the long-term thesis for Bitcoin is still intact. For investors who can look through the noise, periods like this often provide some of the best opportunities to position for the next leg higher.