Bitcoin Whales Push BTC Below $109.5K Ahead of Key US Inflation Report

Bitcoin Price Dips as Whales Return to the Market

Bitcoin (BTC) slid nearly 3% on Friday, dropping to lows of $109,436 on Bitstamp, after a wave of whale-driven transactions rattled traders. The sudden move wiped nearly $350 million in crypto long positions within 24 hours, highlighting the influence of large holders on short-term price action.

Market participants pointed to “spoofy” whale behavior—strategic liquidity shifts designed to manipulate order books—as the trigger for the sell-off.

“This isn’t random noise. It’s the whale playbook repeating itself,” trader Merlijn commented on X, noting significant BTC and Ethereum (ETH) flows into the market maker Wintermute.

BTC/USD one-hour chart. Source: TradingView

Analysts Warn of a Familiar Bitcoin Pattern

Whale-driven volatility has defined much of Bitcoin’s price movement throughout August, with several sharp drops below $109,000 already recorded this month.

Trader BitBull described the current setup as part of a recurring cycle: consolidation, capitulation, breakout, and rally.

“Looking at the BTC chart, we are in the capitulation phase. This could last weeks and present strong entry opportunities,” he told followers.

Keith Alan, co-founder of Material Indicators, revived his nickname for manipulative whales—“Spoofy the Whale”—arguing that liquidity games are creating short-term predictability but adding long-term uncertainty.

Crypto liquidations (screenshot). Source: CoinGlass

Inflation Data Looms as Next Market Catalyst

Beyond whale activity, Bitcoin’s weakness is also tied to broader macroeconomic concerns. The U.S. Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation gauge, was set for release Friday morning.

With a potential September interest rate cut on the horizon, the PCE data could swing risk markets in either direction.

“Depending on the print, the Fed’s favorite gauge could either trigger another dump… or ignite a relief rally,” analyst Kyle Doops warned.

Source: Merlijn The Trader

Outlook: Consolidation or a Relief Rally?

For now, Bitcoin traders face a tug-of-war between whale-driven volatility and macroeconomic uncertainty. If inflation data comes in lower than expected, BTC could find support and rally. If not, whales may gain further control of short-term market direction.

As August draws to a close, investors are watching for a decisive breakout that could confirm whether Bitcoin’s current “capitulation phase” will give way to a new bullish cycle—or extend the turbulence into September.

1. Why did Bitcoin fall below $109.5K?

Bitcoin dropped nearly 3% after whale-driven trades triggered a wave of liquidations, intensifying short-term selling pressure.

2. How much was liquidated during the BTC dip?

Over $350 million in crypto long positions were wiped out within 24 hours.

3. What role do whales play in Bitcoin price movements?

Large holders often influence short-term markets by shifting liquidity, creating volatility and potential manipulation.

4. How could the US inflation report affect Bitcoin?

The PCE Index release could sway risk markets—low inflation may spark a BTC rally, while high inflation could drive another sell-off.

5. What’s the short-term outlook for Bitcoin?

Traders expect continued consolidation. A relief rally may occur if inflation data is favorable, but whales could still pressure prices lower.

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