Bitcoin News Today: Whale Investors Bet on Ethereum, Shifting Capital from Bitcoin

A notable shift in cryptocurrency market activity has emerged as a significant portion of dormant Bitcoin supply is being converted into Ethereum. This transition, observed primarily on the Hyperliquid platform, highlights the strategic reallocation of assets by major whale investors. Recent data from CryptoQuant indicates that a well-known Bitcoin whale address, “195DJ,” has sold over 31,000 BTC since mid-August. This whale still holds nearly 50,000 BTC, valued at approximately $5.4 billion at current prices, suggesting that the move is not an outright exit from Bitcoin but rather a hedging strategy.

The whale’s activity aligns with Bitcoin’s price decline from above $120,000 to approximately $108,600. Rather than converting Bitcoin into stablecoins, the whale has opted to swap BTC for ETH on Hyperliquid, a move that reflects a short-term bullish view on Ethereum. Analysts note that such a strategy typically indicates a belief that Ethereum could outperform Bitcoin in the near term. This is especially notable given the whale’s long-term holding history, as such shifts are uncommon among experienced investors who tend to park capital in stable assets during market rallies.

Hyperliquid has become a central hub for this strategic reallocation. The platform enables traders to exploit market inefficiencies through leveraged positions, and it has seen a surge in Ethereum derivatives open interest. By June 2025, Ethereum’s open interest reached $10.54 billion, an increase of 58.65% from the previous period. In contrast, Bitcoin’s futures market showed stagnation, with traders adopting a “sell on rally” approach. This divergence underscores a broader trend of capital flowing into Ethereum, driven by factors such as staking yields and regulatory clarity.

Whale investors are leveraging Hyperliquid’s infrastructure to execute large-scale trades. For example, a whale deposited 1,000 BTC into Hyperliquid to short Bitcoin while simultaneously buying Ethereum. The platform’s institutional-grade tools and no-KYC access have attracted sophisticated traders, although this also raises concerns about market stability. High-leverage trading, with positions sometimes reaching 50x or 100x, has led to significant liquidation risks. In one notable instance, a whale realized $16.3 million in profits from shorting Bitcoin but also incurred a $4 million loss, prompting Hyperliquid to reduce leverage caps to 40x for BTC and 25x for ETH.

The impact of these whale strategies is evident in BTC and ETH price dynamics. Ethereum’s 14% price increase in Q2 2025 coincided with a decline in Bitcoin’s dominance from 60% to 57%. This trend highlights how leveraged trading can create self-reinforcing price cycles. While Ethereum benefits from inflows, Bitcoin faces selling pressure, which moderates its price growth. However, macroeconomic factors, such as the U.S. trade deficit and Chinese banking challenges, have also influenced investor sentiment, contributing to Bitcoin’s recent decline to a 50-day low below $108,000.

Despite these macroeconomic headwinds, the whale activity on Hyperliquid indicates a temporary shift in momentum rather than a structural change. Ethereum’s technological advantages, including its deflationary supply model and ongoing upgrades, make it an attractive alternative for investors seeking growth. However, the risks associated with high-leverage trading and market volatility remain significant. As a result, Hyperliquid has introduced safeguards such as multi-exchange price oracles and leverage caps to mitigate systemic risks.

For investors, the evolving landscape presents both opportunities and challenges. The capital rotation from Bitcoin to Ethereum suggests a broader structural trend, but it also underscores the importance of prudent risk management. Traders are advised to monitor whale activity closely, as these large movements can influence price action and market sentiment. Understanding these dynamics is critical for both retail and institutional participants navigating the increasingly complex crypto market.

Source: [1] Major Bitcoin Whale Offloads $3.4 Billion (https://beincrypto.com/bitcoin-whale-ethereum-pivot-on-hyperliquid/) [2] Hyperliquid Whale Moves Shift Capital from BTC to ETH (https://thecurrencyanalytics.com/altcoins/hyperliquid-whale-trading-shifts-capital-from-bitcoin-to-ethereum-194088) [3] A certain ancient Bitcoin whale has deposited 2000 BTC ... (https://www.chaincatcher.com/en/article/2202152) [4] Bitcoin Drop Driven By US Trade Deficit, China Banks (https://cointelegraph.com/news/bitcoin-risks-dollar100k-crash-as-us-china-economic-woes-take-hold)