Bitcoin News Today: Bitcoin Whale Shifts $360M to DeFi as Digital Gold Faces Yield Machine

A Bitcoin whale holding approximately $11 billion in BTC has executed a $360 million transfer to the decentralized finance (DeFi) protocol Hyperunit, reigniting speculation about a potential rotation into Ether (ETH). This marks the whale's first on-chain activity in two months, according to blockchain analytics firm Arkham. The whale previously rotated $5 billion in BTC into ETH in August 2025, a move that briefly elevated its ETH holdings to rival those of major corporate treasuries. The current transfer mirrors historical patterns, with analysts suggesting it could signal further BTC-to-ETH conversions or position adjustments.

The whale's recent activity aligns with broader market trends of capital reallocation between Bitcoin and Ethereum. In August, the same entity sold $2.59 billion in BTC to acquire $2.2 billion in spot ETH and open a $577 million Ether perpetual long position. This prior rotation triggered a short-term ETH rally, with prices surging nearly 8% within 48 hours before correcting. The current transfer, while smaller in scale, may indicate similar strategic positioning, particularly as institutional interest in Ethereum's staking and DeFi ecosystems grows.

The whale's remaining BTC holdings-over $5 billion in its primary wallet-suggest potential future selling pressure for Bitcoin, the world's largest cryptocurrency by market capitalization. Despite this, Bitcoin continues to attract investors seeking a hedge against macroeconomic risks, including the U.S. government shutdown and rising federal debt. Ryan Lee, chief analyst at Bitget, emphasized Bitcoin's "scarcity and divisibility" as key attributes reinforcing its role as a "digital gold" asset in volatile markets.

Meanwhile, dormant Bitcoin holders have also shown renewed activity. Data from CryptoQuant analyst Maartunn revealed that holders inactive for three to five years transferred 32,300 BTC ($3.93 billion) to exchanges in October, marking the largest such movement of 2025. This cohort's activity, combined with whale rotations, has contributed to Bitcoin's mixed price performance in late 2025. While the cryptocurrency briefly hit $126,000 in early October, it has since retreated to around $121,277, with technical indicators suggesting a cooling of momentum.

The renewed BTC-to-ETH rotation hypothesis is supported by broader on-chain trends. According to Matrixport, Ethereum's dominance temporarily dipped in September as altcoins outperformed, but Bitcoin is now reclaiming leadership in the current cycle. The firm noted that the rally remains "selective rather than broad-based," with large investors favoring diversified exposure between BTC and ETH. This dynamic aligns with Ethereum's expanding role in staking and layer-2 scaling solutions, which have driven institutional adoption and yield-seeking strategies.

Analysts caution that whale activity should be interpreted with nuance. Willy Woo, a prominent on-chain analyst, highlighted that Bitcoin's supply remains concentrated among long-term holders with low cost bases, influencing the capital flows required to sustain price gains. He noted that such holders' selling behavior-whether for profit-taking, portfolio rebalancing, or leveraged positions-can significantly impact market dynamics.

The current environment also features heightened institutional demand for Ethereum, with entities like Grayscale and corporate treasuries absorbing substantial ETH inflows. Grayscale's recent staking initiatives, for instance, have injected $1.2 billion in ETH into the network, offsetting some validator exit pressures. This institutional participation underscores Ethereum's evolving role as both a speculative and utility asset, with staking yields and DeFi innovation driving sustained interest.

As the market digests these developments, traders are closely monitoring on-chain flows, exchange inflows, and Ethereum's deposit activity for further signals. The whale's next moves-whether consolidating ETH positions, liquidating BTC, or deploying capital across other assets-could shape near-term sentiment for both cryptocurrencies. For now, the interplay between Bitcoin's scarcity-driven appeal and Ethereum's yield-generating potential continues to define the crypto market's trajectory.