Bitcoin News Today: OG Whales Ditch Bitcoin for Ethereum, Sparking Market Turmoil

Bitcoin’s price has faltered in recent trading sessions, sparking concern among traders and analysts as the cryptocurrency retreats from recent highs. The pullback has been attributed to a combination of whale activity, shifting capital flows, and evolving market sentiment. Data from on-chain analytics and market commentary reveal a complex interplay of factors contributing to the current bearish momentum, with implications for the broader bull market narrative.

A major contributing factor to the recent selloff was a large-scale offloading of Bitcoin by a long-time whale, who sold approximately 24,000 BTC over the weekend—worth around $2.7 billion at the time of the trade. This transaction, which triggered a flash crash in BTC/USD to $112,174 on Sunday, was followed by further liquidations across the market. According to on-chain analyst Willy Woo, the slow upward trajectory of Bitcoin this cycle is partly due to the concentrated supply held by OG whales, many of whom acquired their holdings during the 2011 bull market at prices below $10 per BTC. As these whales rotate their positions into other assets, particularly Ethereum (ETH), the required capital to absorb each BTC sale exceeds $110,000, creating a structural drag on price action [5].

The whale in question appears to be adopting a strategic pivot to ETH, having converted a significant portion of its Bitcoin into Ethereum. According to data from Arkham and Hyperliquid, the entity opened a long ETH position and staked a substantial amount of the newly acquired ETH, signaling a long-term commitment to the altcoin. This shift aligns with broader trends observed in the market, where institutional and high-net-worth investors are increasingly favoring Ethereum due to its staking capabilities and more favorable capital efficiency [2]. The transition has also had a cascading effect, as traders reacted to the whale’s movements with their own sell orders, amplifying the initial price drop.

Smaller Bitcoin hodlers, however, continue to exhibit a more bullish disposition. On-chain data from CryptoQuant indicates that wallets holding less than 10 BTC are still in accumulation mode, suggesting that retail and smaller institutional investors remain optimistic about the long-term potential of Bitcoin. Meanwhile, larger hodlers with balances between 10 and 100 BTC have begun taking profits, reflecting a cautious shift in strategy as the price approaches critical support levels. Wallets holding between 100 and 1,000 BTC, however, are showing a mix of accumulation and distribution behavior, indicating indecision among mid-sized investors [1].

The broader market impact of the recent Bitcoin correction has also spilled over into Ethereum, which experienced a sharp 4% drop in the same time frame. The decline, while notable, has not deterred institutional and corporate investors from maintaining their bullish stances. For example, Japanese firm Metaplanet announced the purchase of 103 BTC worth $11.7 million, bringing its total Bitcoin holdings to $2.2 billion. This move coincided with the company’s upgrade to mid-cap status in the FTSE Japan Index, further cementing the trend of corporate adoption of Bitcoin as a treasury asset [3].

Traders and analysts remain divided on the future direction of the BTC/USD pair. While some see the current pullback as a healthy correction that could ultimately strengthen the price action in the long term, others warn that the bull market may be reaching a turning point. Technical analysts have identified classic bearish patterns, such as a head and shoulders reversal, which could signal a more prolonged decline if confirmed [1]. In addition, the relative strength index (RSI) has shown bearish divergence, with price highs exceeding RSI highs, a potential indicator of weakening momentum [1].

Market participants are also closely watching upcoming macroeconomic data, particularly the U.S. Personal Consumption Expenditures (PCE) index, which will provide further insight into the Federal Reserve’s stance on interest rates. With market expectations pointing to a near 90% probability of a 25-basis-point rate cut in September, the interplay between monetary policy and crypto markets will remain a key factor in Bitcoin’s performance. Analysts have emphasized that while rate cuts may provide a tailwind for risk assets, the timing and magnitude of these events could influence the trajectory of Bitcoin’s next move [1].

Source:

[1] BTC bull run over at $111K? 5 things to know in Bitcoin this ... (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week)

[2] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash, Still ... (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[3] Bitcoin Price Drops Below $112000 As Metaplanet ... (https://bitcoinmagazine.com/markets/bitcoin-price-drops-below-112000-as-metaplanet-announces-to-buy-11-7m-worth-of-bitcoin)

[4] 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)

[5] Bitcoin Struggles Stir Trader Concerns (https://cointelegraph.com/news/bitcoin-struggles-stir-trader-concerns)