Institutional Whales Trigger $2B Crypto Earthquake, Sparking Market Mayhem
Bitcoin experienced a sharp and sudden price drop, often referred to as a “flash crash,” on August 24, 2025, wiping out $4,000 from its price within minutes. The move came after a period of gains driven by Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole Economic Symposium, which had sparked optimism about potential interest rate cuts. The price plunge reached as low as $110,000, marking a fresh intraday low since early July and triggering a wave of liquidations across the crypto derivatives market. Over $642 million in leveraged long positions were erased in the 24-hour period following the crash, with Bitcoin alone accounting for $235.5 million in liquidations [1].
The crash was attributed to the actions of a large…
