It has been a turbulent weekend for Bitcoin traders, who, after the drawdown, can’t help but ask: Why is crypto down today? While Ethereum is trading near all-time highs and on the brink of breaking above $5,000 for the first time, it’s a different story for BTC USD traders. The world’s most valuable coin flash-crashed on Sunday, August 24, triggering a massive liquidation event that risks dragging the broader crypto market lower. With Bitcoin inches away from $110,000, its performance today and in the coming days could set the tone for altcoins, shaping market sentiment.
Meanwhile, excitement remains high among ETH USD traders. Looking at the daily chart, the second most valuable coin continues to defy gravity. Although the coin is down today, the path of least resistance is upward, with a ceiling around the $4,950 area, the high recorded on August 24. If ETH USD breaks $5,000, there’s a high likelihood of the coin more than doubling by year-end, aligning with most analysts’ predictions.
(Source: TradingView)
Considering the price action across the board, it makes sense to analyze possible scenarios that could make or break crypto. After the rally of the past two months, ETH is likely to extend gains, pushing prices to new all-time highs. However, the outlook is more complex for Bitcoin. If Bitcoin falls below $110,000 and bulls lose control to bears, capital inflows into ETH and other best cryptos to buy may slow, triggering a sell-off. This correlation isn’t new, as Bitcoin’s high market share often sets the trend for altcoins, including some of the top Solana meme coins.
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Why is Crypto Down Today? Will BTC USD Recover? Will Ethereum Crack $5,000?
After dropping to as low as $1,300 in April 2025,
Ethereum
3.00%
Ethereum
ETH
Price
$1,761.52
3.00% /24h
Volume in 24h
$21.35B
Price 7d
prices have more than doubled, rallying by over 200%. The coin is now trading above $4,600, nearly reaching $5,000 over the weekend. Technically, the upside remains, and as long as $4,000 holds, the path of least resistance is upward.
A close above $5,000 could trigger more capital inflows, as public companies continue to HODL ETH, eyeing its attractive 3-5% APY. For example, SharpLink Gaming, holding over 728,000 ETH, has staked 95% of its stash, generating returns regardless of price. Unlike BTC, which lacks smart contracts, ETH holders can use DeFi protocols like Maple Finance or Aave to lend assets and earn yields.
Bitcoin’s performance today depends on institutional flows. By August 22, institutions redeemed over $23 million in spot Bitcoin ETF shares, mostly from BlackRock’s IBIT. Fidelity, Grayscale, and Ark & 21Shares saw decent inflows.
(Source: SoSoValue)
However, whales pose a risk. The reason crypto is down today is primarily due to a block BTC transaction on August 24. Bitcoin prices fell from $114,600 to nearly $110,000, triggering massive liquidations. On August 24, over $218 million in leveraged long positions were forcibly closed, the highest in over two weeks.
(Source: Coinglass)
Based on on-chain data, the drop was caused by a whale placing a block sell transaction. The entity sold 24,000 BTC via Hyperunite and Hyperliquid, triggering the downturn.
(Source: Twitter Sanib)
Analysts note the whale still holds over 152,000 BTC across multiple addresses, with funds originally withdrawn from the HTX exchange nearly six years ago. Given the HTX connection, there is speculation that the address belongs to Justin Sun.
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What Happens Next? Time to Buy Bitcoin Hyper?
The uncertainty following the liquidation of BTC traders explains why traders are proceeding cautiously. Meanwhile, smart investors are confident about the future. They are exploring high-quality projects and some of the hottest crypto presales in the market.
Currently, attention is on Bitcoin Hyper, a platform building a Bitcoin layer-2 using Solana technology. While Bitcoin is the most valuable coin and network, it faces scaling challenges.
Bitcoin Hyper developers aim to resolve this by releasing a scalable, secure, cost-effective layer-2. By incorporating a Canonical bridge using zero-knowledge proofs, users can move BTC to the layer-2 cheaply, securely, and privately.
On the Bitcoin Hyper platform, BTC holders can engage in DeFi, lend assets, and earn yields. The Bitcoin Hyper presale has raised over $11.9 million, with each HYPER token trading at $0.012795 and less than 12 hours remaining. Investors can buy and stake HYPER, earning a 93% yield.
Visit HYPER HereDISCOVER: 9+ Best High-Risk, High-Reward Crypto to Buy in 2025
Why Is Crypto Down Today? BTC USD Crashes, Ethereum Nears $5K
- BTC USD fell to nearly $110,000 after a whale-driven $218M liquidation event
- ETH USD holds above $4,600, but may soar above $5,000
- Whales to determine pace of crypto expansion
- Bitcoin Hyper presale raises over $11.9 million
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