JAKARTA – The crypto market slumped sharply on Tuesday (26/8) after a wave of liquidations and heavy selling by major investors (whales) dragged down bitcoin and ethereum prices, wiping out hundreds of millions of dollars from positions dominated by margin trading.

Bitcoin briefly fell below USD 109,214 after one entity sold 24,000 BTC worth USD 2.7 billion, according to on-chain data.

Nevertheless, the whale still holds more than 152,000 BTC valued at over USD 17 billion.

According to tradingview.com on Tuesday (26/8), ethereum, the second-largest cryptocurrency, dropped to around USD 4,405, although it has remained one of the strongest performers in recent weeks.

CoinGecko data showed global crypto market capitalisation fell 4.5% to USD 3.85 trillion, with total liquidations of leveraged positions reaching USD 941.8 million in the past 24 hours.

Of that amount, ethereum liquidations accounted for USD 321.6 million while bitcoin totalled USD 261.6 million.

Altcoins were also hit, with Solana plunging 11.6% to USD 197 and XRP falling 5.3% to USD 2.88.

The correction reversed part of the earlier rally driven by dovish remarks from Federal Reserve Chair Jerome Powell in his Jackson Hole speech last week.

Powell signalled the possibility of an interest rate cut in September, citing a weakening labour market and persistent inflationary pressures.

However, global uncertainty, including tariff disputes and political tensions, has kept the market outlook murky. Some economists expect a rate cut in September, while others believe the Fed will wait for fresh labour and inflation data.

Amid the volatility, analysts predict bitcoin will trade in the USD 110,000–120,000 range over the next two weeks.

In contrast, ethereum’s outlook is viewed as stronger, with a price target of USD 4,600–5,200.

Data also showed several giant bitcoin whales that had been dormant suddenly reactivated and rotated into ethereum.

“On-chain data indicates a capital rotation, with whales selling bitcoin to increase exposure to ethereum, accelerating ETH’s momentum,” said Gracy Chen, CEO of Bitget.

“The combination of monetary easing signals, sustained ETF inflows, and ethereum’s growing utility positions ETH as the strongest candidate to lead the next rally.”

While institutional demand continues to support bitcoin, analysts believe ethereum’s fundamentals and regulatory clarity give it the edge to lead the next phase of the crypto rally. (DK/KR)