Bitcoin News Today: Bitcoin's Slow Climb: OG Whales and Institutional Shifts Stifle Growth

Bitcoin’s price has seen uneven movement in recent trading sessions, raising questions about the pace of its recovery. According to Willy Woo, a prominent Bitcoin analyst, the slow price appreciation may be attributed to early investors—often referred to as “OG whales”—who acquired Bitcoin at a much lower price during the 2011 market cycle. These early holders are believed to have a significant portion of the total supply, and their selling behavior exerts a substantial influence on the market. Woo highlighted that it now costs over $110,000 in fresh capital to absorb each Bitcoin sold by these early investors, pointing to the concentration of supply among a small group of participants. This dynamic may be slowing the rate of price growth as newer capital is required to counteract their selling pressure [3].

This week’s price fluctuations were also exacerbated by a large-scale trade initiated by a major crypto whale. Data from blockchain analytics platforms indicate that a whale rotated approximately $2 billion worth of Bitcoin into Ethereum over the past nine days. This shift triggered a cascade of sell orders, resulting in a sharp decline in Bitcoin’s price. The move also coincided with a 4% drop in Ethereum’s value, though both assets have since recovered a portion of their losses. The whale’s strategy reportedly included long positions on Ethereum, which increased in value as market participants reacted to the initial trades before the whale began closing its positions. The ripple effects of this trading activity underscore the growing influence of large institutional-style crypto players in shaping market dynamics [3].

The actions of these whales and their impact on price movements are not isolated events. In recent months, a broader trend has emerged where large Bitcoin holders are increasingly converting their positions into Ethereum. This shift has been driven by Ethereum’s regulatory tailwinds and its growing utility in the decentralized finance (DeFi) ecosystem. Ethereum’s price has surged 220% since hitting a low in early April, outpacing Bitcoin in terms of growth. Analysts attribute this trend to the fact that public companies are beginning to treat Ethereum as a staking asset, generating yield through participation in the network’s consensus mechanism. According to Ben Kurland of DYOR, this shift represents a form of demand that is more stable and less speculative than retail-driven Bitcoin buying [1].

The growing influence of whales and institutional players in the cryptocurrency market has also raised regulatory and economic concerns. As Bitcoin and other cryptocurrencies become more integrated into global financial systems, sudden market disruptions—such as those caused by large whale trades—could have broader implications. Kevin Rusher of RAAC warned that a total collapse in Bitcoin’s value could trigger a financial crisis far worse than the 2008 global downturn, particularly due to the scale of derivatives and ETF products now linked to the cryptocurrency [2]. The interconnectedness of crypto with traditional financial markets means that events in the cryptocurrency space are no longer confined to niche investors or speculative traders.

In the context of these market dynamics, the broader economic environment is also playing a role in shaping Bitcoin’s performance. The ongoing U.S.-China trade tensions have created uncertainty in the Bitcoin mining sector, with tariffs on Chinese-manufactured mining equipment increasing costs for U.S. companies. Some mining firms, including IREN and CleanSpark, are now facing potential liabilities due to alleged mislabeling of equipment origins. Meanwhile, Chinese manufacturers like Bitmain and Canaan are adapting by establishing operations in the United States to bypass tariffs and secure a foothold in the growing domestic crypto industry [4].

As the market continues to evolve, the role of large-scale holders in determining Bitcoin’s price trajectory remains a critical factor. With regulatory frameworks still developing and global economic pressures influencing market sentiment, the next phase of Bitcoin’s price action will likely depend on whether fresh capital can outpace the selling pressure exerted by early investors and institutional whales.

Source:

[1] Crypto Market Today (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[2] What Would Happen If Bitcoin Totally Crashed? (https://finance.yahoo.com/news/happen-bitcoin-totally-crashed-212409834.html)

[3] Bitcoin OG whales to blame for BTC's painful rise (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades)

[4] US-China Trade War Hits Bitcoin Miners With Tariffs (https://cointelegraph.com/news/us-china-trade-war-bitcoin-mining-tariffs)