Flash Crash Hits Crypto as Bitcoin, Ethereum, and XRP Plunge After Powell Spike

Crypto markets were rattled this weekend as Bitcoin, Ethereum, and XRP suddenly reversed gains after Fed Chair Jerome Powell remarks. A whale-triggered flash crash sent major tokens tumbling, sparking volatility despite little movement in traditional equities.

The cryptocurrency market faced another reminder of its volatility this weekend, when a flash crash erased much of the optimism that followed Federal Reserve Chair Jerome Powell recent comments. While Powell remarks had initially buoyed investor sentiment across digital assets, a massive sell-off by a single whale sparked a sudden downturn.

Bitcoin (BTC) led the decline, dropping nearly 3% to around $111,500, erasing its short-lived gains. Ethereum (ETH) slipped 3.6%, falling to roughly $4,870, while XRP lost around 2.5%, trading just under $0.62. The abrupt moves caught traders off guard, as the broader S&P 500 index barely moved, highlighting how crypto markets can decouple from traditional finance.

The trigger, according to market watchers, was a whale unloading a significant position, which cascaded into liquidations across derivatives markets. Options data suggests traders are becoming increasingly cautious, with implied volatility climbing ahead of key macroeconomic events and Fed policy decisions later this year.

Despite the short-term turbulence, analysts noted that the broader bull cycle remains intact. Crypto markets had rallied strongly over the past two weeks, driven by institutional flows and regulatory optimism, but the flash crash underscores lingering fragility in liquidity and order books. For now, Bitcoin’s immediate support sits near $110,000, with resistance forming around $115,000.

Observers warn that further whale activity, combined with thin weekend liquidity, could continue to spark sharp moves in the coming weeks. Yet, others see this pullback as a potential accumulation opportunity, especially as long-term fundamentals and adoption trends remain strong

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