Finance

Bitcoin Dips Below $116,000 as Whales Take Profits: What’s Next for Crypto?

August 18, 2025, 10:11 PM

A laptop displays a graph of falling prices, with a flaming bitcoin symbol superimposed, illustrating a price crash for cryptocurrency.

As the value of Bitcoin plummets, the concept of digital currency appears to be burning in the flames of a market crash. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Leading cryptocurrencies, including Bitcoin and Ethereum, experienced a notable slide on Sunday night.

The market downturn was driven by “whales” (large investors) locking in recent gains, indicated by a surge in the Exchange Whale Ratio.

Bitcoin tumbled below $116,000 after reaching an all-time high of $124,000, while Ethereum dropped below $4,400.

The Story So Far

Leading cryptocurrencies, including Bitcoin and Ethereum, had recently experienced significant gains, with Bitcoin reaching an all-time high of $124,000.

Large investors, referred to as “whales,” began to move funds to exchanges to sell and lock in these recent profits.

Data from CryptoQuant’s Exchange Whale Ratio indicated this increased activity of large holders moving assets to exchanges.

Why This Matters

The cryptocurrency market remains highly susceptible to significant price fluctuations driven by large investors taking profits, underscoring its inherent volatility.

This period of consolidation, marked by profit-taking, is a natural part of the market cycle following recent record highs for major cryptocurrencies.

Who Thinks What?

Large investors, commonly referred to as “whales,” are initiating a market slide by moving funds to exchanges to lock in recent gains and realize profits after a period of significant price increases.

CryptoQuant’s analysis indicates that the surge in the Exchange Whale Ratio suggests large investors are actively moving funds to exchanges, typically to sell and realize profits, underscoring a period of consolidation in the cryptocurrency market.

Leading cryptocurrencies, including Bitcoin and Ethereum, experienced a notable slide on Sunday night as large investors, commonly referred to as “whales,” began to lock in recent gains. This market downturn saw Bitcoin tumble below $116,000, following its ascent to an all-time high of $124,000 earlier in the week.

Market Movements

Bitcoin’s overnight decline pushed its price below $116,000, even as its 24-hour trading volume saw a slight increase of 5%. This pullback occurred shortly after the flagship cryptocurrency had reached a new peak, indicating a period of profit-taking by significant holders.

The activity of these large investors was highlighted by data from CryptoQuant. According to their analysis, the Exchange Whale Ratio, which measures the ratio of the top 10 inflows to the total inflows of an exchange, surged sharply. This metric often suggests that whales are actively moving funds to exchanges, typically to sell and realize profits.

Ethereum mirrored Bitcoin’s downward trend, experiencing its own plunge. The second-largest cryptocurrency by market capitalization dropped from an intraday high of $4,575 to fall below the $4,400 mark, reflecting the broader market’s reaction to the profit-taking spree.

Conclusion

The synchronized dips in Bitcoin and Ethereum underscore a period of consolidation in the cryptocurrency market, driven by large investors cashing out after a period of significant gains. This profit-taking behavior is a natural part of market cycles, as investors secure returns on their holdings.