Crypto Market Update: Dormant Whale Sells US$2.7 Billion in Bitcoin, Market Capitalization Declines
August 25, 2025 — The cryptocurrency market experienced significant downward pressure on Monday, August 25, as a long-dormant Bitcoin whale offloaded approximately US$2.7 billion worth of Bitcoin, contributing to a sharp decline in market valuations.
Market Summary as of August 25, 2025
As of 9:00 p.m. UTC on Monday, Bitcoin (BTC) was priced at roughly US$110,805, marking a 1.2% decrease within the past 24 hours and its lowest point during the day. The highest price reached earlier in the session was around US$112,185. This drop followed a notable flash crash on Sunday triggered by the sale of 24,000 BTC by a dormant whale—an investor who had been inactive since 2019. Ethereum (ETH) also suffered losses, falling to US$443.97, a 7% decline over the same period, hitting its day’s lowest valuation. Its peak for the day was US$4,667.76. Other prominent altcoins including Solana (SOL), XRP, Sui (SUI), and Cardano (ADA) tracked similar downward trends, with losses ranging from 4.4% to 8.4%.
The broader cryptocurrency market saw a 3.8% decrease in the afternoon session on Monday, with leveraged liquidations reaching over US$715 million. This wiped out more than US$80 billion from the total crypto market capitalization.
The Dormant Whale and Market Impact
On-chain analytics revealed that the whale’s 24,000 BTC had been dormant since 2019 and was originally associated with withdrawals from the HTX exchange. The entity rotated its position into Ethereum, accumulating an excess of 400,000 ETH, while also opening leveraged long positions and engaging in staking.
This large-scale movement came amid market uncertainty following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium. Powell’s comments, initially interpreted as dovish, ultimately left investors questioning the timing of potential interest rate cuts. The CME Group’s FedWatch tool continues to indicate a high probability of a rate cut in September. However, analysts warn that Powell’s cautious tone may recalibrate market expectations.
Recent Developments in the Crypto Space
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Solana Treasury Fundraising: Galaxy Digital, Multicoin Capital, and Jump Crypto have reportedly teamed up to raise US$1 billion aimed at acquiring a Solana treasury. Bloomberg cited anonymous sources confirming support from the Solana Foundation and Cantor Fitzgerald’s role as lead banker in the initiative, which plans to take over an unnamed publicly traded company.
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XRP Credit Card Launch: Cryptocurrency exchange Gemini, founded by the Winklevoss twins, announced a partnership with Ripple to launch an XRP edition credit card. The card, issued through WebBank, will enable users to earn XRP rewards on everyday purchases. Gemini has also expanded customer access to Ripple’s US-backed stablecoin RLUSD, allowing direct asset trading on its platform. CEO Tyler Winklevoss described the card as "a bridge to the future of finance," while Ripple CEO Brad Garlinghouse emphasized its role in making crypto usage more accessible.
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Partnership Between SBI Group and Chainlink: Japan’s SBI Group and blockchain oracle platform Chainlink revealed a collaboration to develop crypto tools for financial institutions in Japan and the broader Asia-Pacific region. The partnership plans to facilitate the tokenization of real-world assets like bonds, leveraging Chainlink’s interoperability protocols. This alliance expands SBI Group’s recent series of partnerships, which include deals with Circle, Ripple Labs, and Startale focused on stablecoins and tokenized assets.
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Metaplanet’s Index Inclusion and Bitcoin Purchase: Tokyo-listed firm Metaplanet, which recently rebranded as a Bitcoin treasury company, is set to join the FTSE Japan Index following a review in September. The upgrade to mid-cap status aligns with the company’s ambition to become Japan’s leading Bitcoin holder. Metaplanet confirmed a fresh purchase of 103 BTC, raising its total reserves to nearly 19,000 BTC. The company’s stock base expanded last week after exercising stock acquisition rights, which provided fresh capital for Bitcoin purchases.
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Japan’s Financial Authorities Endorse Crypto Diversification: Japanese Finance Minister Katsunobu Kato supported including crypto assets as part of diversified investment portfolios despite warning about their volatility. His comments at a Tokyo event emphasized balancing innovation with prudent regulation, reflecting ongoing efforts to update Japan’s regulatory landscape, including approval of the first yen-denominated stablecoin.
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Philippines Proposes Sovereign Bitcoin Reserve: In a move to tackle national debt, Philippine Representative Miguel Luis Villafuerte introduced the Strategic Bitcoin Reserve Act, which mandates the central bank to acquire 2,000 BTC annually for five years. The amassed Bitcoin would primarily serve to retire public debt and be locked for two decades. The proposal draws parallels to strategic reserves like the US Strategic Petroleum Reserve and aims to diversify the country’s financial base amid a debt-to-GDP ratio approaching 60%.
Conclusion
Monday’s crypto market turbulence underscores how large-scale movements by dormant investors, coupled with macroeconomic uncertainties, can dramatically impact cryptocurrency prices and market sentiment. Meanwhile, positive institutional developments and increasing government engagement worldwide suggest continued maturation and adoption of digital assets.
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Authors: Giann Liguid and Meagen Seatter
Disclosures: The authors hold no direct investment interests in the companies mentioned in this article.