Bitcoin News Today: Bitcoin Whales Bet Big on Ethereum as Market Matures

A major Bitcoin whale, who had held 14,837 BTC—valued at over $1.6 billion—for seven years without making a transaction, recently sold 670 BTC, amounting to $76 million, to open leveraged long positions in Ether (ETH) on August 21. This whale had originally acquired the BTC from exchanges Binance and HTX and had held the assets without movement for the majority of that period. The funds were used to establish four leveraged ETH positions totaling 68,130 ETH, with most of the exposure at 10x leverage, according to blockchain analysis firm Lookonchain [1]. This move reflects a broader trend of Bitcoin whales rotating their assets into Ethereum, signaling a growing optimism in the second-largest cryptocurrency by market capitalization [2].

The ETH positions were opened around the $4,300 price level, but Ether’s price declined sharply afterward, reaching $4,080 at its lowest point. This caused three of the whale’s positions to dip below break-even, bringing them close to liquidation levels of $3,699 to $3,732. Despite the initial drawdown, Ether has since recovered slightly, rising 2.9% in the last 24 hours to $4,287 as of the latest reporting [1]. The whale's decision to leverage its position highlights the perceived upside in Ethereum, particularly as it approaches its 2021 all-time high of $4,878.

This strategic shift from Bitcoin to Ethereum is not isolated. Other institutional participants and corporate treasuries are also increasing their ETH exposure. BitMine Immersion Technologies, a publicly traded Bitcoin company, recently added 52,475 ETH to its treasury, bringing its total holdings to 1.52 million tokens valued at $6.6 billion [1]. Meanwhile, two institution-linked wallets were reported to have accumulated 9,044 ETH each, valued at $38 million, during market dips [3]. These actions indicate a broader trend of capital reallocation from Bitcoin to Ethereum, driven by favorable market conditions and improved institutional infrastructure around Ethereum-based products.

The movement comes shortly after Bitcoin reached a record high of $124,128 on August 14, and it follows a broader pattern of Bitcoin whales selling their long-held assets. A Satoshi-era whale holding 80,201 BTC, for instance, began transferring its holdings to Galaxy Digital after a 14-year dormancy, with the final transfer made on July 16 [1]. Another whale awoke after six years of inactivity and moved 1,042 BTC to a new wallet. Analysts have noted that while such activity can introduce short-term volatility, it is a sign of a maturing market, where new buyers are stepping in to absorb large sell volumes.

Slava Demchuk, CEO of AMLBot, commented on the strategic rotation, noting that Bitcoin whales are diversifying into alternative assets such as Ethereum due to expectations of growth [2]. He also emphasized that the market is better equipped to handle such movements than in the past, pointing to a 2025 event where a large Bitcoin whale moved 80,000 BTC—valued at $8 billion—without causing a catastrophic price collapse. This signals a growing resilience and depth in the cryptocurrency market, where institutional participation and improved infrastructure are helping to absorb large transactions with fewer systemic risks [2].

The Bitcoin whale activity has also been interpreted as a reflection of broader sentiment shifts. With Bitcoin trading at over $113,000—a 10% drop from its peak—investors are increasingly looking for opportunities in Ethereum, where leveraged strategies offer greater flexibility and upside potential. The move also coincides with broader macroeconomic concerns, including the Federal Reserve’s upcoming Jackson Hole symposium and the uncertainty surrounding interest rate policy. As such, the whale’s decision to leverage ETH positions may also reflect a hedge against potential inflationary pressures and a more nuanced approach to portfolio diversification [2].

Source:

[1] Cointelegraph - Bitcoin Whale Dumps BTC for 295M ETH Long Position (https://cointelegraph.com/news/bitcoin-whale-dumps-btc-for-295m-eth-long-position)

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

[3] Reddit - BTC Whale Dumped Their Bitcoin Bags for Ethereum (https://www.reddit.com/r/CryptoCurrency/comments/1mwupqc/btc_whale_dumped_their_bitcoin_bags_for_ethereum/)