8 hours ago
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TLDR
- Bitcoin crashed over 12% from its all-time high of $124,457 to $108,762
- Veteran trader Peter Brandt warns BTC needs to recover above $117,570 to negate negative sentiment
- Bitcoin OG whale sold 750 BTC worth $83.11 million to Binance
- JPMorgan reports Bitcoin looks undervalued compared to gold as volatility drops to record low 30%
- Corporate treasuries now hold over 6% of Bitcoin’s total supply
Bitcoin’s price has experienced a sharp decline recently, dropping more than 12% from its all-time high of $124,457 to $108,762. This downturn has triggered concerns among traders and investors about a potential deeper crash in the cryptocurrency market.
Peter Brandt, a legendary trader known for his technical analysis, has broken his silence regarding the Bitcoin price movement. He expressed concern over the formation of a double-top pattern, which is often considered a bearish reversal signal.
Most of you crypto nerds know about the huge sell order that came into the $BTC market over the weekend. Some of you discount it as unimportant. I am not so quick to judge that. It represented SUPPLY. Tops in markets are created by SUPPLY or DISTRIBUTION. BTC needs to get back… pic.twitter.com/TWEoYGkaYK
— Peter Brandt (@PeterLBrandt) August 27, 2025
Brandt pointed out that Bitcoin needs to recover above $117,570 to counter the negative sentiment created by this pattern. While sharing his analysis, he maintained neutrality, stating he was not taking either a bullish or bearish stance in his prediction.
The crash has had wider impacts on the crypto market. The overall cryptocurrency market capitalization fell from its all-time high of $4.2 trillion to $3.76 trillion in August, resulting in a loss of more than $400 billion from the industry in just a few weeks.
On-chain data has revealed increased selling pressure from large holders. A Bitcoin OG whale known as “bc1qlf” sold another 750 BTC worth $83.11 million to Binance. This whale had started liquidating positions when Bitcoin crossed the $90,000 mark.
In total, the whale sold 1,750 BTC worth $189.3 million at an average price of $108,160, making a profit of $550 million. What makes this more striking is that these coins were purchased 12 years ago for just $1.66 million when Bitcoin was priced at $332.
Further adding to concerns, data from CryptoQuant showed that the 30-day moving average of the Taker Buy/Sell Ratio dropped to its lowest level since May 2018. This metric suggests Bitcoin may face more selling pressure in the short term.
JPMorgan Sees Bitcoin as Undervalued
Despite the recent price drop, Wall Street bank JPMorgan has published a research report suggesting Bitcoin is trading too cheap relative to gold as its volatility falls to historic lows.
The report highlighted that Bitcoin’s six-month rolling volatility has dropped from nearly 60% at the start of the year to about 30% today, the lowest on record. With volatility converging toward gold, Bitcoin is now only twice as volatile as the precious metal, the lowest ratio ever recorded.
JPMorgan’s analysts believe this makes the digital asset increasingly attractive for institutional portfolios. On a volatility-adjusted basis, they suggest Bitcoin’s market cap would need to rise by 13%, implying a price of about $126,000, to match gold’s $5 trillion in private investment.
By the bank’s models, Bitcoin is currently undervalued by around $16,000 compared to gold, suggesting room for upside despite the recent crash.
Corporate Adoption Accelerates
One factor contributing to Bitcoin’s decreasing volatility is the accelerating purchases by corporate treasuries, which now hold more than 6% of the total supply. This trend echoes how central bank quantitative easing once dampened bond volatility.
Corporate adoption is gaining momentum through equity index inclusion, drawing passive capital inflows. For instance, Metaplanet was upgraded into FTSE Russell’s mid-cap category and added to global benchmarks, while Nasdaq-listed Kindly MD is raising up to $5 billion after a $679 million Bitcoin purchase.
Bitcoin’s price saw a jump above $112,000 on Wednesday due to buy-the-dip sentiment after falling below $109,000. At the time of writing, BTC was trading at $112,424.
Bitcoin Price on CoinGeckoTrading volume decreased by 19% in the last 24 hours as traders remained cautious. Bitcoin is expected to remain volatile as investors may rotate to altcoins.
Market participants are now watching Nvidia’s quarterly earnings release closely. Investors are looking for signs of AI revenue growth, which has shown a tight correlation with Bitcoin’s price recently.
According to seasonality data from Bitwise Asset Management, Bitcoin’s price performance has averaged 0.23% in August and -4.68% in September since 2020, suggesting September might bring further challenges for the cryptocurrency.
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