Bitcoin News Today: A Bitcoin Whale's $2.7B Shift to ETH Sparked a Market Meltdown

Bitcoin’s price volatility intensified last week as a large whale moved approximately 24,000 BTC—valued at over $2.7 billion—into Ethereum (ETH), triggering a market correction that led to the liquidation of long positions across major exchanges. According to on-chain data, this activity occurred across six transactions over nine days, with 18,142 BTC, worth $2 billion, already converted into 416,598 ETH, signaling a strategic shift in asset allocation by the whale. The sale of these Bitcoin holdings contributed to a flash crash on August 24, during which BTC fell nearly 2.2% in nine minutes, hitting a low of $112,174 [1].

The cascading impact of this whale’s moves was amplified by leveraged traders, who faced a total of $806.44 million in liquidations in the 24 hours following the sell-off, with $642.45 million attributed to long positions [6]. The largest liquidation event recorded was a $12.49 million position on OKX, further illustrating the concentrated leverage in BTC and ETH. Ethereum was also significantly affected, with the second-largest cryptocurrency falling from a peak of $4,953.73 to $4,738 within hours, as traders scrambled to close positions following the Bitcoin sell-off [1].

The whale’s trading strategy appears to have involved opening long positions in ETH on Hyperliquid, with a total exposure of 551,861 ETH—worth over $2.6 billion—suggesting a deliberate attempt to profit from price movements [1]. However, as the whale began liquidating these positions, it triggered a broader market reaction, with traders reversing their bullish bets in response. This dynamic led to a self-reinforcing cycle of selling pressure, compounding the initial sell-off and causing further price declines.

Market analysts have drawn attention to the concentrated ownership of Bitcoin by OG whales, particularly those who acquired their holdings in 2011, when BTC traded at under $10. The disparity between their cost basis and current prices has created a structural imbalance, as it takes substantial fresh capital to absorb their sell pressure. This dynamic has become a focal point for market observers, who argue that the actions of a small number of large holders can disproportionately influence price movements [1].

The broader implications of the whale’s activity extend beyond immediate price swings. With the whale still holding 152,874 BTC across multiple addresses—valued at approximately $17 billion—concerns have been raised about the potential for further market disruption. Some analysts have theorized that if the whale were to offload its remaining holdings all at once, it could push Bitcoin into bear market territory, potentially driving the price to a range between $79,000 and $90,000 [2].

The incident has reignited debates about the lack of depth in crypto markets and the risks associated with high leverage. Traders on social media platforms criticized the whale for executing a large sell order on a Sunday, a day with typically lower liquidity, and questioned how a single actor could have such a profound impact on the market. While some argued that the whale’s actions exposed the vulnerabilities of the crypto ecosystem, others cautioned that similar volatility could be expected if other large Bitcoin holders, such as Strategy, which owns nearly 3% of the total supply, were to enter the market [2].

Source: [1] Why Bitcoin Whale's Huge Selloff Spooked Traders (https://cryptonews.com/exclusives/why-bitcoin-whales-huge-selloff-spooked-traders/) [2] Bitcoin OG whales to blame for BTC's painful rise: Willy Woo (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades) [3] $642M in longs wiped out as Bitcoin drops to lowest price (https://cryptoslate.com/insights/642m-in-longs-wiped-out-as-btc-and-eth-lose-ground/) [4] $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/) [5] Crypto Liquidations: A Shocking $320 Million Vanishes in an Hour (https://coinstats.app/news/0a5bc6daaf5faad56bca627be5354b99e8dea061d7db886af6f742b7c336b909_Crypto-Liquidations-A-Shocking-320-Million-Vanishes-in-an-Hour) [6] $642M in longs wiped out as Bitcoin drops to lowest price (https://cryptoslate.com/insights/642m-in-longs-wiped-out-as-btc-and-eth-lose-ground/)