The market faced a sudden shock when a whale sold about 24,000 BTC, triggering a flash crash. This heavy sell order came shortly after Federal Reserve Chair Powell hinted at future interest rate cuts. The dovish tone gave markets a brief push upward, but the whale action erased gains within hours. Options markets showed stress as traders hedged against more volatility.
Earlier in the week, price slipped below $113,000, a level that marked a six-week low. Despite expectations of easier Fed policy, the asset traded around $112,550, down 2.1%. Resistance near $117,000 has capped attempts to rally higher. Whales appear to take profits whenever prices near this barrier, while inflows into Bitcoin ETFs have cooled after strong activity earlier this year.
Cautious investor sentiment also played a role. Mixed signals from the Federal Reserve have confused markets. While Powell hinted at a cut, other policymakers warned against quick moves because inflation remains sticky. As a result, traders turned defensive, leading it to test lower levels.