Bitcoin News Today: Bitcoin Whales Flip to Ethereum as BTC Faces Sell-Off Pressure

Bitcoin fell below $112,000 last week, triggering a brief but sharp correction that saw its price dip nearly 2.2% within nine minutes before recovering. The decline was attributed to large-scale transactions by dormant Bitcoin whales, who moved significant BTC holdings into Ethereum. One such whale, who had held 100,784 BTC for nearly seven years, resurfaced to offload BTC and purchase 62,914 ETH in the spot market while also opening a long position of 135,265 ETH. Another whale transferred 24,000 BTC — valued at $2.7 billion — into the decentralized perpetual trading platform Hyperliquid, with 18,142 BTC of that amount already sold and converted into 416,598 ETH [2].

The coordinated selling and rebalancing of portfolios by these large holders exacerbated short-term volatility. The price of Bitcoin dropped from $114,666 to $112,174 in under 45 minutes, marking one of the largest single-day drawdowns of the year. Ether also experienced a sharp 4% decline during the same period. However, both cryptocurrencies partially recovered as market participants recalibrated positions and sentiment stabilized [2].

The shift from Bitcoin to Ethereum is being viewed as a strategic move by institutional and sophisticated traders. On-chain data from Lookonchain showed multiple dormant BTC holdings being activated and swapped for ETH, with traders such as BitBull noting the aggressive accumulation of Ether by whales. This trend is being interpreted as a sign of growing confidence in Ethereum’s performance relative to Bitcoin. Ether has already surged 220% since hitting a low of $1,471 in April and has even reached new all-time highs recently [1]. Analysts have pointed to Ethereum’s superior treasury demand, stronger momentum in the current cycle, and its relative performance during BTC dips as key factors in the ongoing rotation of capital [3].

Meanwhile, institutional accumulation of Bitcoin continues to gain momentum, with U.S. spot Bitcoin ETFs now holding over 1.3 million BTC — nearly 6.5% of the total supply. BlackRock’s iShares Bitcoin Trust alone accounts for more than 744,000 BTC, reflecting the deepening integration of Bitcoin into institutional portfolios. Major financial firms such as Brevan Howard, Jane Street, and Goldman Sachs have all increased their exposure, while sovereign wealth funds and university endowments are adding crypto-linked equities as part of broader diversification strategies [4].

The tightening of Bitcoin’s supply chain has also played a role in the market’s recent dynamics. Since the halving event in April 2024, daily issuance has been cut to 450 BTC, while institutional demand has consistently outpaced new supply. The net effect is a liquidity squeeze, which can lead to rapid price appreciation when demand increases. Glassnode’s Accumulation Trend Score, a metric tracking buying pressure across all wallet sizes, reached a maximum reading of 1.0, indicating strong accumulation activity. Wallets holding up to 100 BTC were noted to be absorbing more than the entire monthly issuance of new BTC, reinforcing the idea that the market is being supported by persistent buyers [4].

Looking ahead, analysts are closely monitoring whether Ethereum can maintain its upward trajectory. If ETH closes the week above $4,600, it could set the stage for a move toward $5,200–$5,500, according to trader BitBull. On the other hand, Bitcoin is expected to test $114,000 again as a key level for the weekly close [1]. The broader macroeconomic environment, including expectations for Federal Reserve rate cuts, is also likely to play a role in shaping the market’s direction over the coming months [4].

Source: [1] 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) [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] Why Are Dormant Bitcoin Whales Rotating Into Ethereum ... (https://finance.yahoo.com/news/why-dormant-bitcoin-whales-rotating-233132720.html) [4] Crypto Wallets With Up To 100 BTC Absorbing More Than ... (https://www.crowdfundinsider.com/2025/08/247762-crypto-wallets-with-up-to-100-btc-absorbing-more-than-entire-monthly-bitcoin-issuance-creating-critical-structural-support-for-the-market-analysis/)