Ethereum News Today: A Bitcoin Legend Bets Big on Ethereum's Growth

A long-dormant Bitcoin whale, believed to be one of the original holders of Bitcoin, has recently made a significant move by selling 670 BTC—valued at approximately $75 million—as part of a strategic pivot into Ethereum. The whale had been holding 14,837 BTC, valued at over $1.6 billion, for more than seven years without any prior transaction. On August 21, the whale activated the account and distributed the 670 BTC across four wallets to open leveraged long positions on Ethereum. Three of these positions were set at 10x leverage, with a combined notional value of $209 million [1].

The whale initially liquidated 660 BTC on the decentralized exchange Hyperliquid and used the proceeds to enter leveraged positions. This move is interpreted as a strategic asset rotation, indicating bullish sentiment for Ethereum, which is currently trading at around $4,296.25, having gained 4.1% in the past 24 hours but still down 6.4% from its recent all-time high [1]. Analysts suggest that such movements signal confidence in Ethereum’s growth potential, particularly as institutional interest and infrastructure for the second-largest cryptocurrency continue to expand [2].

Ethereum’s growing institutional appeal is further reflected in its record-high open interest (OI) on the CME, which hit $8.3 billion on August 20. This surge in OI is attributed to increased participation from institutional investors and large ETH holders, who have continued to accumulate Ethereum despite the broader market downturn. Additionally, spot Ethereum ETFs have recorded consistent inflows, suggesting growing confidence in the token’s fundamentals and utility [3].

The shift from Bitcoin to Ethereum has also impacted the broader crypto market dynamics. Bitcoin’s dominance has declined from 65% to 59% over the past two months, reflecting a capital rotation into higher-beta assets like Ethereum. This trend highlights investors’ increasing appetite for riskier but potentially higher-reward assets, especially as macroeconomic concerns remain elevated [4].

Blockchain analyst Slava Demchuk of AMLBot noted that the whale’s decision to sell Bitcoin for leveraged Ethereum positions reflects a broader trend of strategic diversification and expectations of growth in Ethereum. He also emphasized that the market is maturing, as large transactions no longer trigger the same level of volatility as in the past. For instance, a similar movement in July 2025 involving 80,000 BTC led to a 5% drop in Bitcoin prices, whereas the current transaction appears to have been absorbed with relative stability [1].

Despite the bullish signals, the whale’s Ethereum positions initially dipped to $4,080, with three positions nearing liquidation levels around $3,700. However, this volatility is a known risk of leveraged trading, and whales are often willing to take such risks when they perceive higher potential upside in a given asset. In this case, Ethereum’s perceived growth potential and improved institutional tools make it an attractive alternative to Bitcoin for capital rotation [2].

The recent activity underscores a broader theme in the crypto market: the shift from Bitcoin as a store of value to Ethereum as a growth asset. As whales who made their fortunes in Bitcoin take profits and reinvest in Ethereum, it signals a growing belief in the latter’s long-term potential. This trend could further accelerate Ethereum’s adoption and institutional integration in the coming months.

Source:

[1] Bitcoin Whale Dumps $75 Million to Go Long on Ethereum (https://finance.yahoo.com/news/bitcoin-whale-dumps-75-million-152425785.html)

[2] BTC whale dumped their bitcoin bags for ethereum ... (https://www.reddit.com/r/CryptoCurrency/comments/1mwupqc/btc_whale_dumped_their_bitcoin_bags_for_ethereum/)

[3] Ethereum (ETH) Open Interest Hits ATH on CME (https://u.today/ethereum-eth-open-interest-hits-ath-on-cme)

[4] Ethereum Futures Interest Hits Record as Token Erodes ... (https://thedefiant.io/news/markets/ethereum-futures-interest-hits-record-token-erodes-bitcoin-dominance-31096a37)