Bitcoin News Today: A Bitcoin Whale's $2.7B Dump Triggers Chain Reaction, Boosts Ethereum's Rise

Bitcoin experienced a sharp pullback below $110,000 in early August 2025, driven by a massive sell-off from a single whale that triggered over $900 million in trader liquidations. The whale sold 24,000 BTC—worth $2.7 billion—over the weekend, sending the price plummeting by $4,000 within minutes. According to on-chain analyst Sani, the entire 24,000 BTC was liquidated and sent to Hyperunite, a trading platform. The coins had been dormant for more than five years. By Sunday, a total of 12,000 BTC had already moved to Hyperunite, and the whale continued to offload its remaining holdings [1].

The sell-off, attributed to long-term holders who accumulated Bitcoin at significantly lower prices, created a cascade effect. As Jacob King, CEO of WhaleWire, noted, panic selling spread among other traders, exacerbating the drop. A significant portion of the funds from these sales were moved into Ethereum. One whale sold 18.142K BTC—$2.04 billion—of which 275.5K ETH ($1.3 billion) was staked. Another whale converted $76 million in BTC to ETH to open a long position, further reinforcing Ethereum’s upward momentum [1].

This shift in capital from Bitcoin to Ethereum is reflected in the ETH/BTC ratio, which climbed to 0.0368, its highest level since the beginning of 2025. Weekly spot trading volumes for ETH relative to BTC hit an all-time high, with Ethereum trading nearly three times the volume of Bitcoin. This trend is also visible in the derivatives market, where ETH/BTC perpetual futures open interest reached 0.71—its highest point in 14 months. Analyst EgyHash on CryptoQuant's QuickTake platform highlighted that the rising ETH/BTC ratio signals stronger speculative positioning and an adjustment in market preference [3].

Despite the volatility, some analysts remain optimistic about Bitcoin’s near-term prospects. Alex Krüger, founder of Aike Capital, suggested that once short-term momentum clears and the price rebounds above $113,500–$114,000, Bitcoin could see renewed upward movement. Meanwhile, Vijay Boyapati described the current cycle as “one of the greatest monetization events in history,” emphasizing that whale selling is a necessary and finite process for full monetization [1].

However, institutional activity and market structure suggest a broader reallocation is underway. Institutional investors have increased their Ethereum holdings, with investment funds now holding approximately 6.1 million ETH—a 68% rise from December 2024 and 75% from April 2025. The ETH fund market premium has also surged to 6.44% on a two-week average, reflecting heightened demand [3].

The price action is further compounded by ETF outflows and a fragile onchain environment. Glassnode’s Market Pulse report indicated that the market is shifting from euphoria to fragility, with fading spot momentum and ETF outflows reaching $1 billion. Additionally, transaction fees have collapsed to decade lows, signaling thin liquidity and a challenge for miners. With September historically a weak month for Bitcoin, the market is bracing for potential consolidation or deeper drawdowns [5].

Source: [1] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash, Still Holds Over $17B Worth BTC (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html) [2] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/) [3] Ethereum vs. Bitcoin: ETH/BTC Ratio Climbs to Yearly (https://www.mitrade.com/insights/news/live-news/article-3-1053086-20250820) [4] ETH to BTC: Ethereum Price in Bitcoin (https://www.coingecko.com/en/coins/ethereum/btc) [5] Asia Crypto News: BTC Fragility and ETH Rotation Signal (https://www.coindesk.com/markets/2025/08/26/asia-morning-briefing-btc-fragility-and-eth-rotation-signal-market-bracing-for-consolidation-without-new-liquidity)