eToro Report: Bitcoin Slumps After Whale Sale - Causing a Flash Crash

After being as high as $117,000 following Fed Chairman Powell’s speech at the annual Jackson Hole symposium, bitcoin has slumped lower and is now trading at $110,000 after a whale reportedly sold over 24,000 bitcoins (approximately $2.4 billion) on Sunday, triggering a flash-crash.

Simon Peters, Crypto Analyst at eToro, shares: With the price having broken and trading below the recent $112,000 support level, we could see further moves to the downside. In addition, and not a great omen, is that September tends to be a month of the year, more often than not, which has seen a negative performance for the bitcoin price.

There may be some hope for the crypto markets to make a comeback this week, though, as we have more economic data in the form of GDP (Gross Domestic Product) figures, unemployment claims and PCE (Personal Consumption Expenditures) inflation data coming out from the US.

A slowing economy, higher unemployment claims and cooling inflation may boost cryptoasset prices as traders and investors potentially buy the dip and ‘nail on’ a rate cut at the Fed’s upcoming September meeting.