Bitcoin News Today: Bitcoin Whales Shift $2 Billion to Ethereum Amid 5% Flash Crash and 10.5% ETH/BTC Surge

Bitcoin’s recent volatility has drawn attention as a significant whale rotation into Ethereum signaled a shift in market sentiment. The flash crash on August 24, 2025, saw Bitcoin drop nearly 5% within a short period, triggering $257 million in liquidations—94% of which occurred on the long side. The largest single liquidation was a $12.49 million BTC-USDT perpetual swap [1]. The sharp decline followed the breakdown of short-term support at the $111k level, exposing weak market structure and triggering cascading stop-loss orders [1].

This move coincided with a major capital reallocation, as over 24k BTC was reportedly sold by a large whale and subsequently funneled into Ethereum. Approximately $2 billion worth of ETH was purchased, and about $1.3 billion was staked, amplifying Ethereum’s relative strength versus Bitcoin [1]. The ETH/BTC ratio increased by 10.5% over the week, breaking the 0.04 resistance level, a key technical indicator of capital reallocation [1].

The shift in capital flows highlights a divergence in performance between the two top cryptocurrencies. While Bitcoin has declined roughly 3% in August, Ethereum has surged around 25% during the same period [1]. The staking activity and net inflows into ETH suggest that capital is increasingly favoring Ethereum for yield generation and protocol exposure, especially as the market approaches the Federal Open Market Committee (FOMC) meeting in 23 days [1]. Historically, September has been bearish for Bitcoin, with eight of the last 12 Septembers closing in the red [1]. This combination of technical weakness, whale behavior, and macroeconomic uncertainty raises the likelihood of continued volatility and pressure on Bitcoin in the near term.

The flash crash also raised questions about the role of whale activity in amplifying market moves. A large whale reportedly moved coins dormant for more than five years, adding to the selling pressure and liquidity challenges in the BTC pair. While the whale’s actions contributed to the initial drop, the broader flash crash was amplified by thin liquidity and concentrated long positions, leading to cascading stop-losses and perp unwind [1].

Analysts suggest that traders should interpret these flows with caution. A large whale selling into weakness may indicate the formation of a distribution top for Bitcoin, while rapid ETH purchases and staking activity signal capital seeking both yield and exposure to a more active protocol. With macroeconomic risks imminent, traders are advised to reduce leverage, set clear stop levels, and closely monitor the ETH/BTC ratio and staking inflows as key indicators of ongoing capital reallocation [1].

Source: [1] Whale Rotation Into ETH May Signal Waning Bitcoin Conviction and Rising September Volatility (https://en.coinotag.com/whale-rotation-into-eth-may-signal-waning-bitcoin-conviction-and-rising-september-volatility/)