Bitcoin News Today: Bitcoin Whales Shift $2.7B to Ethereum as Market Power Dynamics Shift

A significant sell-off by a Bitcoin whale on Sunday triggered a sharp decline in the cryptocurrency’s price, sending Bitcoin down by over $4,000 in under ten minutes. The whale sold 24,000 BTC—valued at approximately $2.7 billion—according to blockchain data and analysis from multiple on-chain tracking platforms. This large-scale transaction, which included coins that had been inactive for over five years, contributed to a flash crash that dragged Bitcoin’s price below $112,000, with a brief intraday low near $110,671 [4].

The rapid liquidation of this position led to approximately $623 million in forced long positions being wiped out, particularly affecting over-leveraged traders [3]. This event coincided with Bitcoin’s post-Fed rally unraveling after the U.S. Federal Reserve Chair, Jerome Powell, hinted at potential rate cuts during his Jackson Hole speech [2]. Analysts attributed the subsequent price correction to thin weekend liquidity and the cascading impact of the whale’s sales [6].

Despite offloading such a substantial portion of their holdings, the whale still retains 152,874 BTC, valued at over $17 billion [1]. Notably, much of the capital from the BTC sale has been funneled into Ethereum, with two major entities reported to have accumulated 416,598 ETH—valued at $1.98 billion—during the same period. Of this amount, 275,500 ETH, or $1.3 billion, has been staked [1]. This trend aligns with broader market behavior, as other large Bitcoin holders have also been rotating their BTC into ETH, reflecting growing institutional and retail interest in Ethereum’s programmable blockchain and staking mechanisms [5].

The movement of capital from Bitcoin to Ethereum has coincided with Ether reaching new record highs, with ETH briefly surpassing $4,945 on Friday. Ethereum’s dominance in the cryptocurrency market has also increased, with its share rising as investors reallocate capital from Bitcoin to altcoins. This shift is further supported by inflows into Ethereum ETFs, which have seen stronger momentum compared to their Bitcoin counterparts [6]. Institutional demand and growing corporate staking activity are key drivers of this trend, as Ethereum’s ecosystem continues to attract long-term capital.

Analysts have expressed mixed views on the implications of the whale activity. Some argue that the sell-offs are part of a necessary process for Bitcoin’s monetization cycle, with whales offloading their legacy holdings accumulated during the 2011 market peak. Others caution that the market remains vulnerable to large-scale movements, especially during periods of low liquidity. The RSI-7 for Bitcoin currently stands at 40.72, indicating oversold conditions but no clear reversal signal yet [1].

While the flash crash caused immediate panic, some market observers see it as a temporary correction rather than a bearish signal. Alex Krüger, a crypto trader and founder of Aike Capital, noted that Bitcoin could regain upward momentum once short-term volatility subsides and the price moves back above key resistance levels. Vijay Boyapati, another industry analyst, described the current cycle as one of the most significant monetization events in Bitcoin’s history, emphasizing that whale selling is essential for full price discovery [1].

The ongoing shift in capital from Bitcoin to Ethereum underscores the evolving dynamics within the crypto market. As Ethereum continues to solidify its position as the second-largest cryptocurrency by market capitalization, Bitcoin faces the challenge of maintaining its dominance while large holders rebalance their portfolios. The coming weeks will be critical in determining whether Bitcoin can recover from the recent volatility or if Ethereum’s momentum will further erode Bitcoin’s market leadership [5].

Source:

[1] title1 (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[2] title2 (https://www.coindesk.com/markets/2025/08/25/bitcoin-reverses-powell-spike-with-a-flash-crash-as-options-market-signals-jitters-ahead)

[3] title3 (https://www.financemagnates.com/trending/bitcoin-slips-on-a-single-whale-sale-as-ether-neared-5000/)

[4] title4 (https://thedefiant.io/news/markets/whale-dump-sends-bitcoin-to-110671-erases-3-billion-open-interest-0c898063)

[5] title5 (https://cointelegraph.com/news/bitcoin-whales-swap-btc-for-ether-trader-sees-eth-hitting-5-5k-next)

[6] title6 (https://www.theblock.co/post/368060/bitcoin-under-112700-whale-migration)