Bitcoin Whales Trigger Market Jitters as Price Slips Below $109.5K Ahead of U.S. PCE Data

Bitcoin faced renewed pressure on August 30, 2025, as large-scale whale transactions drove the price below the $110,000 threshold. The drop, which briefly took BTC as low as $109,480 on major exchanges, came just hours before the release of the U.S. Personal Consumption Expenditures (PCE) inflation report — a key metric for Federal Reserve policy. Market analysts warn that these “spoofy” trades, designed to create false liquidity signals, may be amplifying volatility during a critical macroeconomic moment.

Whale Activity Adds Fuel to Volatility

Blockchain monitoring platforms detected several unusually large sell orders in the $110,500–$111,200 range, sparking a cascade of liquidations in the derivatives market. According to Coinglass data, over $210 million worth of BTC long positions were liquidated within 24 hours, underscoring the market’s vulnerability to concentrated whale activity.

Such “spoofing” tactics — where large sell walls are placed and quickly removed to manipulate sentiment — have been cited by traders as a growing concern in 2025’s more thinly traded sessions. While Bitcoin remains up 42% year-to-date, the abrupt pullback highlights how whale dynamics continue to shape short-term price action.

Macro Pressures Loom Over Crypto

The timing of the sell-off is notable, arriving just ahead of the July U.S. PCE release. Economists surveyed by Bloomberg expect core PCE to rise 2.9% year-over-year, well above the Fed’s 2% target. A hotter-than-expected reading could renew fears of prolonged monetary tightening, which typically dampens risk appetite across equities and digital assets.

“Whales are exploiting uncertainty around macro data,” said Marcus Lee, head of digital asset strategy at Ardent Capital. “They know retail and institutional traders are sitting on leveraged positions into the PCE print, and sudden sell pressure forces weaker hands out.”

Investor Sentiment Turns Cautious

Funding rates across perpetual futures turned negative following the move, signaling that short positioning is overtaking bullish leverage. At the same time, Bitcoin’s dominance over the broader crypto market held steady near 54%, suggesting investors are not yet rotating into altcoins but are instead retreating into stablecoins.

Psychologically, the $110,000 level had been seen as a short-term anchor for bullish traders. The breakdown below it risks triggering further downside momentum, with technical analysts pointing to $106,000 as the next major support zone. “If PCE surprises to the upside, Bitcoin could easily test sub-$107K levels within days,” noted Lee.

What Comes Next for Bitcoin?

Looking ahead, the interplay between macroeconomic signals and whale-driven volatility is likely to define Bitcoin’s near-term trajectory. Traders will be watching both the PCE report and September’s Federal Reserve meeting for cues on liquidity conditions. Longer-term holders, however, may view such shakeouts as opportunities: on-chain data shows accumulation wallets holding more than 1 BTC have risen 3% since June, suggesting conviction remains intact.

Whether Bitcoin can reclaim and stabilize above $110,000 in the coming days will hinge on both macro outcomes and whether whale-driven manipulation continues to unsettle market depth. For now, volatility remains the only constant as the world’s largest cryptocurrency navigates another pivotal macro week.