Sunday Shakeout: $550M Liquidated as Bitcoin Plunges, Ether Rotation Gains Traction

Whale Dump Sparks $550M Crypto Liquidation Wave as Ethereum Resilience Fuels Rotation Narrative

A sudden Bitcoin flash crash over the weekend triggered more than $550 million in liquidations across crypto markets, after a single whale dumped 24,000 BTC—worth over $300 million—into thin liquidity, wiping out Friday’s Fed-driven gains and rattling leveraged traders.

Market Shake-Up

Bitcoin briefly plunged below $111,000 on Sunday before recovering to around $112,800 by early Monday in Asia. According to blockchain data firm Timechainindex.com, the large holder transferred the entire 24,000 BTC balance to Hyperunite, with 12,000 BTC moved just on Sunday, accelerating the selloff.

The sell pressure erased the gains from Fed Chair Jerome Powell’s Jackson Hole speech, which had fueled a short-lived rally in risk assets, including Bitcoin.

Mass Liquidations, Rotation Themes

The flash crash sparked forced liquidations totaling over $550 million—$238 million in Bitcoin positions and $216 million in Ethereum—highlighting the persistent fragility of leveraged crypto positioning. Analysts say a flush of long positions can create a cleaner setup for recovery, while short liquidations may trigger upside momentum in the next leg higher.

Despite the turbulence in Bitcoin, Ethereum held up better, trading around $4,707—up 9% on the week. Market watchers point to growing evidence of capital rotation into ETH, fueled by expectations of a Fed rate cut and Ethereum’s comparatively smaller market cap.

Institutions Favoring ETH?

“Ethereum stands to benefit more from a liquidity-driven rally,” said Jeff Mei, COO at BTSE. “If the Fed does ease, Ethereum and altcoins could outperform Bitcoin.”

Augustine Fan of SignalPlus noted a structural trend in treasury allocations, with ETH’s market cap rising relative to BTC. “The ETH/BTC ratio is rebounding to levels that suggest renewed institutional interest in Ethereum,” he said.

Samir Kerbage, CIO at Hashdex, added that Ether’s strength is not just macro-driven. “Ethereum’s breakout shows broad investor demand. Institutions are increasingly viewing it as the preferred blockchain for real-world assets and smart contract infrastructure.”

Looking Ahead

Ethereum’s year-to-date gains have climbed to 45%, and analysts say the elusive $10,000 target is no longer far-fetched. As Ethereum continues to anchor stablecoins, tokenized assets, and institutional settlement infrastructure, its role in shaping the next phase of crypto markets is becoming increasingly evident.