Bitcoin fell sharply on Sunday after a massive sale of 24,000 BTC from a major investor. The fall erased the recovery that followed Jerome Powell's signals of a possible rate cut, and the options market is still pointing to persistent uncertainty.
Bitcoin's price plunged more than 2 percent in a matter of minutes, from $114,666 to $112,546. According to data from Timechainindex, the entire sale of 24,000 BTC was carried out via the Hyperunite exchange. The investor, who still controls over 150,000 BTC spread across multiple addresses, also sold another 12,000 BTC on the same day. The coins originated from the former exchange HTX and had lain untouched for six years before being recently moved, making the transactions a rare market event.
The dramatic liquidation pushed the price temporarily below $111,000, before a slight pick-up to around $112,800. The move erased nearly all of the 4 percent rise that followed Fed chief Jerome Powell's speech at the Jackson Hole symposium. Powell then hinted that interest rate cuts may be in question, which provided a short-lived upswing in both Bitcoin and US stocks. The BTC price rose at the time to near $116,900 before the drop now wiped out the gains.
While Powell's signals sparked optimism in many, the derivatives market is far more cautious. Data from Amberdata shows that put options, i.e. contracts that protect against falls, are more expensive than call options. This is reflected in negative 25-delta risk reversals up to December and suggests that professional market participants are hedging against continued downside.
The combination of major investor selling and the signals from the options market underlines that the Bitcoin market is still characterized by high uncertainty and fears of more volatility. At the same time, the situation highlights how sensitive the price is to movements of large holders.
The weekend's developments show the power of individual actors' actions, even against the backdrop of optimism fueled by Powell. For investors, the lesson is clear: understanding the market requires both monitoring on-chain data and insight into derivatives positioning, as these together provide the most realistic picture of risk.
