Crypto Market Dips as Bitcoin Hits Six-Week Low, Ethereum Shows Strength

The cryptocurrency market saw a significant pullback on Tuesday, with Bitcoin dropping to $110,000 (approximately Rs. 92 lakh), marking a six-week low. Ethereum initially surged to a record high of $4,900 (around Rs 4.1 lakh) but soon faced a sharp correction, currently trading at $4,400 (roughly Rs 3.8 lakh).

On Indian exchanges, Bitcoin is priced at Rs 96.4 lakh, while Ethereum holds at Rs 3.8 lakh. Analysts attributed the market downturn to whale-driven selling and large-scale liquidations, which have weighed on sentiment across crypto assets.

Whale Selling Sparks $200 Billion Wipeout

Avinash Shekhar, Co-Founder and CEO of Pi42, said, “The $200 billion wipeout across crypto markets reflects how quickly sentiment can reverse. Bitcoin's drop to a 6-week low highlights the outsized impact of whale movements and shifting macro cues. Holding above key support levels will be critical now, especially as institutional interest remains a stabilizing force in the long term.” Reports suggest that a single whale offloaded around 24,000 BTC, triggering a rapid sell-off across the market.

Ethereum Rallies Before Facing Profit-Taking

Despite Bitcoin’s retreat, Ethereum briefly climbed to an all-time high near $4,900, fueled by institutional demand and ETF inflows. CoinSwitch Markets Desk highlighted, “August has seen $2.5 billion in ETF inflows into Ether alone, even as Bitcoin funds suffered outflows. Despite its rally, ETH wasn't immune: a near 6 percent retreat from the peak underscores rising volatility and profit-taking, while derivatives data reveals elevated short interest amid a resilient long-term bullish narrative.”

Altcoins Face Heavy Losses

The sell-off extended to top altcoins, including Solana, Cardano, Dogecoin, and XRP, all experiencing double-digit losses. According to the CoinDCX research team, “Bitcoin breaks down below the crucial support at $110,000, posing a threat to the upcoming bullish cycle. With this, the top altcoins like Ethereum, XRP, Solana, Dogecoin, and Cardano experience a massive pullback.”

Signs of Resilience Amid Market Volatility

Some analysts remain cautiously optimistic about Bitcoin’s recovery. Edul Patel, Co-founder and CEO of Mudrex, stated, “Bitcoin is trading at $110,000 as bulls attempt to regain control. Despite this, Bitcoin futures open interest climbed to an all-time high, up 13 percent from two weeks earlier. Institutions are buying the dip, accumulating about 3,081 BTC. On the downside, BTC could test the $105,000 support before a relief rally.”

Market Outlook and Key Levels to Watch

Traders are closely monitoring Federal Reserve Chairman Jerome Powell’s next policy move, as potential interest rate decisions could impact market sentiment. Analysts note that the next few sessions will be critical in determining whether Bitcoin stabilizes above $110,000 or drops toward the $105,000 (roughly Rs. 92.17 lakh) support level. Meanwhile, Ethereum may continue to see rotation from institutional flows, balancing its long-term bullish narrative with short-term volatility.

Conclusion

The cryptocurrency market’s sharp retreat highlights the volatile nature of digital assets, with Bitcoin dropping to $110,000 (Rs. 92 lakh), marking a six-week low, and Ethereum surging briefly to $4,900 before correcting to $4,400 (Rs 3.8 lakh).

Analysts point to whale-driven selling and large liquidations as key factors behind the market pullback, while altcoins like Solana, Cardano, and Dogecoin also faced significant losses. Despite this, signs of resilience remain, with institutional investors accumulating Bitcoin and Ethereum benefiting from ETF inflows and sustained long-term interest.

Key support levels, including $110,000 and $105,000 for Bitcoin, will be crucial in determining whether the market can stabilize and regain bullish momentum. Traders are also closely watching macroeconomic developments, including potential policy decisions by Federal Reserve Chairman Jerome Powell, which could influence investor sentiment.

Overall, the market continues to demonstrate both high volatility and opportunities for strategic investors amid a mixed landscape of risk and optimism.