Bitcoin News Today: Bitcoin Whales Ditch BTC for ETH, Sparking DeFi Gold Rush

A Bitcoin whale has sold 24,000 BTC—valued at $2.7 billion—triggering a significant price drop and increased market volatility. The sale, reported by on-chain analyst Sani, was directed toward the Hyperunite platform, with the coins having remained dormant for over five years. The transaction occurred on Sunday and coincided with a $4,000 drop in Bitcoin's price, pushing it to a key support level near $113,000 [1]. The whale still holds 152,874 BTC, valued at over $17 billion, indicating that the selling pressure may continue [1].

The large-scale sell-off has drawn attention to the influence of whale activity in the Bitcoin market. Analyst Willy Woo highlighted that the bulk of BTC supply is concentrated among whales who acquired their holdings at much lower prices, often below $10 per coin. Consequently, absorbing each BTC requires an investment of over $110,000, underscoring the challenges of absorbing large-volume sales from these early investors [1]. This dynamic has contributed to the slow upward movement of Bitcoin's price in the current cycle, as whale-level liquidity is a critical factor in price discovery [1].

In parallel, Bitcoin OGs have begun rotating their BTC into Ethereum (ETH), signaling a broader shift in portfolio strategy. For example, one whale sold 18.142K BTC, worth $2.04 billion, and converted the proceeds into ETH. The total ETH acquisition amounted to 416.598K tokens, valued at $1.98 billion, with 275.5K ETH staked [1]. This movement is not isolated; another whale recently liquidated 670 BTC, valued at $76 million, to open long ETH positions. The shift has raised questions about whether Ethereum is emerging as the new speculative asset class, particularly as Bitcoin continues to exhibit signs of market maturity [3].

The Ethereum buy spree has contributed to increased trading activity on decentralized platforms, particularly Hyperliquid, which reported record volumes of $3.4 billion in a single day [3]. The aggressive repositioning by large investors has also driven a surge in trading fees, with Hyperliquid generating over $4.7 million in a 24-hour period. A portion of these fees was allocated to buybacks of the platform’s native token, HYPE, further illustrating the interplay between whale activity and decentralized finance (DeFi) ecosystems [3].

Market analysts have offered mixed perspectives on the implications of these whale movements. While some, like Alex Krüger of Aike Capital, believe that the short-term price drop presents a buying opportunity, others like Vijay Boyapati view the whale sell-offs as a natural part of the Bitcoin monetization cycle. Boyapati argued that the selling is necessary for the full realization of Bitcoin’s value and is a sign of a maturing asset class [1]. Meanwhile, the broader crypto market has continued to integrate Bitcoin into mainstream investment strategies, with the launch of spot ETFs and growing institutional participation contributing to a more stable price environment [4].

As Bitcoin approaches a potential consolidation phase, Ethereum has emerged as the focal point for speculative trading. The recent performance of ETH, which has reached new all-time highs, has drawn attention from both retail and institutional investors [6]. Bitcoin whales are increasingly swapping BTC for ETH, with one major investor accumulating over 278,490 ETH at an average price of $4,585, totaling $1.28 billion in purchases. This aggressive buying has been accompanied by long positions, with the investor still holding a significant 135,265 ETH position valued at $581 million [6]. Analysts like BitBull have noted that if Ethereum continues to close above $4,600 on a weekly basis, it could set the stage for a move toward $5,200 to $5,500 in the coming weeks.

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] Bitcoin Whale Shifts to ETH With $295 Million Long Position (https://cointelegraph.com/news/bitcoin-whale-dumps-btc-for-295m-eth-long-position) [3] Bitcoin tumbles as whale investor shifts billions to Ethereum (https://cryptoslate.com/whales-2-6-billion-bitcoin-sale-fueled-weekend-crash-amid-eth-buying-spree/) [4] Bitcoin volatility keeps falling, and that means it's maturing as an asset class (https://cryptoslate.com/bitcoin-volatility-keeps-falling-and-that-means-its-maturing-as-an-asset-class/) [5] Bitcoin-Volatility Collapse Forces Risk-Loving Traders ... (https://finance.yahoo.com/news/bitcoin-volatility-collapse-forces-risk-112008080.html) [6] Bitcoin whales swap BTC for Ether as trader sees ETH at ... (https://cointelegraph.com/news/bitcoin-whales-swap-btc-for-ether-trader-sees-eth-hitting-5-5k-next)