Bitcoin’s dramatic price drop below $111,000 after a weekend of volatility sparked by both macroeconomic factors and large-scale market activity. The digital currency’s decline comes despite recent optimism following Fed Chair Jerome Powell’s remarks at Jackson Hole, which indicated the possibility of rate cuts and downplayed inflation concerns. Meanwhile, Ethereum continues to experience gains, fueled by institutional interest and speculative bets on potential rate reductions. The weekend saw a massive transaction involving over 24,000 BTC worth $2.7 billion, conducted by a single whale, contributing significantly to Bitcoin’s decline. Following this move, the cryptocurrency briefly dipped below $111,000 before stabilizing at around $112,800 on Monday. The sharp price swings have resulted in significant liquidations across major cryptocurrencies including BTC and ETH. Meanwhile, Ethereum’s performance suggests a shift in investor sentiment as institutions are increasingly allocating their capital towards the cryptocurrency. This trend is attributed to factors like Ethereum’s smaller market cap compared to Bitcoin, greater potential for growth, and its use in various applications such as smart contracts, stablecoins, and tokenization. Traders are currently cautious, reflected in negative 25-delta risk reversals in the options market on Deribit, which indicate a preference for downside protection while simultaneously anticipating further upside.