Crypto Market Update: Dormant Whale Offloads US$2.7 Billion in Bitcoin, Market Cap Drops

Bitcoin and Ethereum price update

Bitcoin (BTC) was priced at US$110,805, a 1.2 percent decrease in 24 hours and its lowest valuation of the day. The cryptocurrency's highest price on Monday was US$112,185.

Monday's price activity came after a Sunday (August 24) flash crash that was triggered by a 24,000 BTC sale. Losses extended to the broader crypto market, which closed down 3.8 percent Monday afternoon.

The sale was made by a dormant whale that unloaded roughly US$2.7 billion worth of Bitcoin. Onchain data shows the entity, inactive since 2019, moved 24,000 BTC originally linked to a withdrawal from the HTX exchange. The whale rotated into Ether, amassing more than 400,000 coins while opening leveraged longs and staking positions.

The timing coincided with a shift in sentiment following US Federal Reserve Chair Jerome Powell’s Jackson Hole remarks, which were initially read as dovish, but left traders questioning how soon interest rate cuts may arrive.

By Monday, leveraged liquidations had topped US$715 million, erasing more than US$80 billion from the cryptocurrency sector's market capitalization. CME Group's (NASDAQ:CME) FedWatch tool still shows that a September cut is highly likely, but analysts warn Powell’s speech was more cautious than investors first assumed.

Ether (ETH) was priced at US$443.97, down by 7 percent over the past 24 hours to its lowest valuation of the day. Its highest level was US$4,667.76.

Altcoin price update

• Solana (SOL) was priced at US$191.98, down by 5.8 percent to its lowest valuation for Monday. Its highest valuation was US$198.95.

• XRP was trading for US$2.89, down by 4.4 percent in the past 24 hours to its lowest valuation. Its highest valuation of the day was US$2.97.

• Sui (SUI) followed market trends to its lowest valuation of the day as markets wrapped, trading at US$3.38, 8.4 percent lower over the past 24 hours. Its highest valuation of the day was US$3.50.

• Cardano (ADA) was trading at US$0.8536, down by 7.2 percent over 24 hours to its lowest valuation for the day. Its highest valuation was US$0.8777.

Today's crypto news to know

Firms seek US$1 billion for SOL treasury

Galaxy Digital (NASDAQ:GLXY), Multicoin Capital and Jump Crypto, three prominent entities in the digital asset and cryptocurrency ecosystem, are reportedly collaborating to raise US$1 billion to acquire a Solana treasury.

On Monday, Bloomberg, citing anonymous sources, disclosed that the three companies intend to create the largest Solana treasury, with Cantor Fitzgerald set to be the lead banker.

The proposal, endorsed by the Solana Foundation, will involve taking over an unidentified publicly traded entity.

Gemini and Ripple launch XRP credit card

Crypto exchange Gemini, founded by billionaire twins Cameron and Tyler Winklevoss, is collaborating with Ripple to introduce an XRP edition of its credit card. This new offering, issued in collaboration with WebBank, will allow users to earn cryptocurrency rewards across various spending categories.

Additionally, Gemini announced the expansion of customer access to RLUSD, Ripple’s US-backed stablecoin, giving users the ability to directly trade RLUSD for any other asset on the platform.

“The Gemini Credit Card is a bridge to the future of finance. By introducing a special XRP edition of the Gemini Credit Card, we’re giving customers and the XRP Army new ways to earn XRP and express their passion, loyalty, and excitement,” said CEO and co-founder Tyler Winklevoss in a blog post announcing the card.

“Fifty-five million Americans own crypto and that number is only increasing as more people look for easier ways to access and use it in their daily lives," said Brad Garlinghouse, CEO of Ripple.

“With Gemini, we’re making everyday spending a chance to earn and connect with both XRP and RLUSD. It’s a step toward giving people a faster way to move money, and making crypto simple and approachable for everyone.”

SBI Group and Chainlink partner for crypto tools

SBI Group, a major Japanese financial conglomerate, and blockchain oracle platform Chainlink are partnering to create crypto tools for financial institutions in Japan and the Asia-Pacific region, as per a Sunday press release.

While initially focusing on Japan, the collaboration will create infrastructure to tokenize real-world assets, such as bonds, using Chainlink’s interoperability protocol to securely transfer these assets across different blockchain networks.

This marks the fourth crypto partnership SBI Group has struck in days, following agreements with Circle (NYSE:CRCL), Ripple Labs and Startale to advance the distribution of stablecoins and platforms for tokenized real-world assets.

Metaplanet to enter FTSE Japan Index, buys more Bitcoin

Metaplanet (TSE:3350,OTCQX:MTPLF), the Tokyo-listed hotel operator that has rebranded as a Bitcoin treasury firm, will join the FTSE Japan Index (INDEXFTSE:WIJPNC) following FTSE Russell’s September review.

The upgrade moves Metaplanet from small-cap to mid-cap status, with index inclusion set for after markets close on September 19. CEO Simon Gerovich called the milestone proof of the firm’s ambition to be Japan’s top Bitcoin holding company, while also confirming a fresh purchase of 103 BTC, lifting reserves to 18,991 BTC.

The company’s stock base expanded by 4.9 million shares last week after stock acquisition rights were exercised, which provided new funds for Bitcoin buys, but diluted existing investors.

Bloomberg reported last week that Eric Trump, who joined as a strategic advisor in March, is expected at Metaplanet’s shareholder meeting in Tokyo next month.

Japan’s finance minister backs crypto in diversified portfolios

Japanese Finance Minister Katsunobu Kato said on Monday that crypto assets can serve as part of a diversified portfolio, even as he cautioned about their volatility. Speaking at an event in Tokyo, Kato emphasized the government’s role in fostering innovation while avoiding excessive regulation. Contextually, his remarks come as Japan faces mounting public debt exceeding 200 percent of GDP, raising the likelihood of financial repression measures.

Notably, Japan has recently updated its stablecoin regulations and approved its first yen-denominated token.

Philippine lawmaker proposes Bitcoin reserve to address national debt

A Philippine congressman has introduced legislation to create a sovereign Bitcoin reserve designed to pay down the country’s debt. The Strategic Bitcoin Reserve Act, filed by Representative Miguel Luis Villafuerte, mandates that Bangko Sentral ng Pilipinas acquire 2,000 BTC annually over five years, totaling 10,000 BTC.

The holdings would be locked for two decades, with sales permitted only to retire government debt, and capped at 10 percent of assets in any two year span thereafter. Villafuerte likened the reserve to the US Strategic Petroleum Reserve or Canada’s maple syrup stockpile, arguing it would diversify the Philippines’ financial base.

The country’s debt reached US$285 billion, or 60 percent of its GDP, as of January.