Bitcoin price sinks to a monthly low after recent ATH, with late-August volatility driving capital rotation and price swings.
Since the crypto market’s entry in the final week of August, there has been ongoing volatility, which has contributed to the decline in the Bitcoin price.
Concerning investors, the token is currently struggling at its lowest point of the month after setting a new all-time high of $124.4k at the start of the month.
Bitcoin Price Drops Below $112K
Even though Powell’s Jackson Hole address gave rise to an optimistic outlook, Bitcoin price plummeted late Sunday.
After a 2.5% decline in a single day, Bitcoin trades at $111.8k with a market capitalization of $2.22T.
This slump affects the most significant cryptocurrency market, which has lost around 2% of its market capitalization.
The comparable downward trajectory of ETH, SOL, and the other altcoins indicates that investors are cautious.
Notably, the market’s performance has not always been positively impacted by the cryptocurrency stories from the prior week.
The token price plummeted during the FOMC Minutes and other events; however, some, such as Jerome Powell’s Jackson Hole speech, preserved the gains until today.
Bitcoin Price Crash Fueled By Crypto Whale Sell-off
Based on past evidence, investors linked Powell’s speech to Bitcoin’s recent decline and market declines following the Jackson Hole incident.
This might be one of the causes, but the absolute downtrend—particularly the ones from the Satoshi era—was propelled by the crypto whale sell-off.
SO WHY DID BITCOIN DUMP?
We warned you 3 days ago.
The classic pump & dump after every Powell Jackson Hole speech struck again! pic.twitter.com/laOPI8FWfZ
— Crypto Rover (@rovercrc) August 25, 2025
The top whale sold 24,000 Bitcoin for more than $2.7 billion hours earlier, causing the cryptocurrency price to plummet by $4k in minutes.
Furthermore, within minutes, this sell-off resulted in the loss of $45 billion in market capitalization.
According to Lookonchain, another OG is on the Bitcoin swap, where they have deposited around $2.7 billion in tokens for sale to Hyperliquid and purchased $2.2 billion in spot over the past five days.
According to cryptocurrency researcher Willy Woo, these first owners are to blame for the price collapse because they purchased Bitcoin at $10 or less.
But for now, it would take at least $110,000 for someone to absorb the revenues they are generating. An upward move is therefore more difficult.
Why is BTC moving up so slowly this cycle?
BTC supply is concentrated around OG whales who peaked their holdings in 2011 (orange and dark orange).
They bought their BTC at $10 or lower. It takes $110k+ of new capital to absorb each BTC they sell. pic.twitter.com/7CbWXsvX2l
— Willy Woo (@woonomic) August 24, 2025
Even while the effects are now catastrophic, scientists worry that far more similar behavior may occur.
Interestingly, Bitcoin continues to dominate the cryptocurrency market, and analysts like Michael Saylor forecast a 30% year-over-year increase.
However, capital rotation still appears at the time of writing.
As a result, last week saw the second-largest outflows since the start of spot Bitcoin ETFs, totaling $1.17 billion.