Bitcoin Plunges to $108k Amid Whale Selling and Fed Uncertainty

Overview of the Market Drop

As of 09:10 AM IST on Saturday, August 30, 2025, Bitcoin has plummeted to $108,000, marking a significant decline from its recent peak of $124,000 earlier in August. This sharp drop, erasing billions in market value, is driven by aggressive selling from large holders (whales) and uncertainty surrounding the U.S. Federal Reserve’s monetary policy. The cryptocurrency’s fall reflects heightened volatility, with technical breaches and macroeconomic pressures amplifying the downturn.

Contents

Context of the Decline

Recent Market Trends

Bitcoin’s price surge to $124,000 in early August 2025 was fueled by institutional inflows and bullish sentiment following Trump’s pro-crypto policies. However, the subsequent plunge below $109,000, as reported on August 30, 2025, has been triggered by a $2.7 billion sell-off from a single whale, offloading 24,000 BTC. This move, combined with reduced whale activity and $2 billion in ETF outflows, has intensified selling pressure.

Federal Reserve Uncertainty

The Federal Reserve’s pause on rate cuts, amid persistent inflation concerns, has cast a shadow over risk assets like Bitcoin. Analysts suggest that a hawkish stance from the Fed, expected to be clarified at the upcoming Jackson Hole Symposium on August 31, 2025, could further depress prices. The U.S. Dollar Index’s recent strength, testing support at 98.00, adds to the bearish outlook.

Key Drivers of the Plunge

Whale Selling: A major whale liquidated 24,000 BTC over the weekend, sparking a panic cascade and driving prices to $108,890.
Technical Breakdowns: Bitcoin breached its 100-day moving average, a bearish signal triggering algorithmic sales.
Institutional Shifts: $2 billion in ETF outflows and reduced adoption metrics, with search interest down 63% year-over-year, signal waning enthusiasm.
Macroeconomic Pressure: The Fed’s paused rate cuts and global economic uncertainty have heightened volatility.

Market Impact and Projections

Current Price: $108,000, down 12% from the $124,000 peak.
Support Levels: Key support at $108,000; a break below could target $105,000 or $100,000.
Resistance Levels: Recovery above $110,000 could signal a rebound toward $112,000.
Volatility: Annualized volatility has dropped to 30% from 60% earlier in 2025, but short-term swings remain high.

Benefits and Risks

Potential Benefits

Buying Opportunity: Analysts view the current dip as undervalued, with the 30-day MVRV rate at -3.37%, historically a signal for rebounds.
Long-Term Growth: Institutional adoption and regulatory clarity, like the U.S. Strategic Bitcoin Reserve proposal, support a bullish narrative.

Risks

Further Declines: Failure to hold $108,000 support could lead to a deeper correction.
Fed Policy Impact: An unexpected rate hike could exacerbate selling pressure.
Whale Influence: Continued large-scale sell-offs could destabilize prices.

Recent Developments

On August 29, 2025, on-chain data revealed a whale transferred 12,000 BTC to Hyperunite, intensifying the sell-off. Posts on social media platforms indicate retail sentiment has shifted to “ultra bearish,” with the Fear and Greed Index at 44, a level often preceding recoveries.