Whale-Driven Bitcoin Flash Crash Signals Bearish September as Smart Money Rotates to Ethereum

Bitcoin suffered a 5% flash crash over 24 hours, dipping to $110,000 and triggering $257 million in liquidations, 94% of which were long positions. The largest single liquidation—$12.49 million—occurred on OKX’s BTC-USDT swap. Historically, September is bearish for BTC, having closed lower in eight of the last 12 Septembers. With the next FOMC meeting 23 days away, volatility was expected. Behind the move, a major whale sold over 24,000 BTC—including coins dormant for more than five years—and sent 12,000 BTC to Hyperunite. Proceeds are rotating into Ethereum, with traders buying $2 billion worth of ETH and staking $1.3 billion. The ETH/BTC ratio jumped 10.5% this week, breaking above the 0.04 level for the first time since the last U.S. election cycle. Year to date, BTC is down 3% in August, while ETH is up 25%. This whale-driven rotation and the failed rebound from early-August support suggest waning conviction in BTC’s short-term upside. Traders should prepare for a potentially turbulent September as smart money reallocates capital toward ETH’s stronger performance.