Bitcoin Flash Crash, Ethereum’s New High & Web3 Breakouts – Blockchain News Roundup (Aug 25–26, 2025)
Bitcoin’s roller-coaster: Over the weekend, Bitcoin suffered a sudden flash crash after an anonymous whale unloaded 24,000 BTC. The sell-off sent BTC plunging below $111,000, wiping out about $4,000 in minutes coindesk.com cryptonews.com. The cascade triggered more than $550 million in leveraged position liquidations across the market coindesk.com coindesk.com. Bitcoin briefly bottomed just under $111K before stabilizing around $112–113K by Monday morning coindesk.com coindesk.com. Analysts noted the whale’s dump erased gains from Fed Chair Jerome Powell’s bullish remarks days earlier coindesk.com coindesk.com. Still, some see a silver lining: “A flush of long liquidations can reset the market for a cleaner bounce,” CoinDesk observed, suggesting the shakeout could pave the way for healthier upside ahead coindesk.com. Ethereum’s resilience and rotation: In contrast, Ethereum surged to new heights. Ether briefly crossed $4,900 to notch a fresh all-time high before easing back to the mid-$4,700s cryptonews.com. It remains up ~9% on the week coindesk.com. Some analysts believe big investors are rotating from BTC into ETH, betting Ethereum’s smaller market cap offers more upside if monetary conditions ease coindesk.com coindesk.com. “Ethereum's momentum…would give it more upside if a Fed rate cut unleashes more money,” said Jeff Mei, COO of BTSE coindesk.com. Institutional interest in