Bitcoin News Today: Whales Trigger BTC Exodus as Capital Flees to Ethereum

A major Bitcoin whale has sold 968 BTC, valued at approximately $110 million, on Hyperliquid, signaling a strategic shift in capital allocation from Bitcoin to Ethereum. According to on-chain analytics and market data, the whale’s sale is part of a broader trend where Bitcoin holders are rotating their assets into ETH, reflecting a growing institutional and high-net-worth investor preference for Ethereum-based assets. The move appears to be accelerating, with several large-scale investors liquidating BTC holdings to fund long positions in Ethereum and related altcoins [1].

The whale’s actions have had immediate market implications. The sale of 968 BTC coincided with a broader market sell-off, with Bitcoin dropping below $112,700 for a brief period, triggering significant liquidations across the crypto market. This event followed a larger, weekend sell-off of 24,000 BTC by another whale, which pushed Bitcoin into a key support zone and led to a $4,000 intraday crash. The 968 BTC sale adds to a cumulative pattern of whale activity that has introduced volatility into the market, particularly as large holders have been unloading positions accumulated from early years of Bitcoin’s history [2].

Analysts point to the structural imbalance in the supply distribution of Bitcoin as a contributing factor to the volatility. Willy Woo, a prominent on-chain analyst, explained that many large Bitcoin holdings were acquired at significantly lower prices, and any sales at current levels require substantial capital to absorb the value. This dynamic places upward pressure on Bitcoin’s price when selling halts or reverses, but it also means that large-scale selling can quickly overwhelm market liquidity, especially when whales rotate into other assets like Ethereum [1].

The Ethereum accumulation is particularly noteworthy. Data from on-chain analysts show that one of the Bitcoin whales has already purchased 472,920 ETH in spot trades, with nearly 275,500 of those tokens staked. Another whale has taken large leveraged positions in Ethereum, as well as in altcoins such as HYPE, LINK, AAVE, and MKR, indicating a broader belief in the potential for an "altcoin season." This shift has also been supported by macroeconomic trends, including strong inflows into Ethereum-focused ETFs and growing institutional interest in Ethereum-based financial products [2].

The market response to these whale activities has been mixed. While Bitcoin has experienced short-term sell-offs and ETF outflows, Ethereum has attracted significant buying pressure. Standard Chartered’s head of digital assets, Geoffrey Kendrick, highlighted Ethereum’s current valuation as a "great entry point" for investors, predicting it could reach $7,500 by the end of 2025. This optimism is partly driven by the growing adoption of Ethereum by corporate treasuries, which are leveraging the token’s utility through staking and DeFi protocols [5].

Despite the volatility, some analysts remain cautiously optimistic about Bitcoin’s long-term trajectory. Alex Krüger, a crypto trader and founder of Aike Capital, noted that the market is likely to stabilize once short-term selling pressure subsides. He suggested that a rebound could begin if Bitcoin recovers above the $113,500 to $114,000 range. Similarly, Vijay Boyapati, a crypto expert, argued that the current selling pressure from whales is a natural part of the market cycle and a sign of Bitcoin’s broader monetization [1].

The larger context of the market environment includes a shift toward decentralized finance (DeFi) and the rising prominence of platforms like Hyperliquid. Hyperliquid, a decentralized derivatives exchange, has outperformed traditional platforms like Robinhood in monthly trading volume for three consecutive months, underscoring the increasing dominance of DeFi protocols in the crypto trading space. This trend highlights how institutional and retail investors are adapting to new market structures, leveraging the speed and efficiency of decentralized exchanges to execute large-scale transactions [4].

Source:

[1] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash, Still Holds Over $17B Worth BTC (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[2] Bitcoin Whale With $11400000000 in BTC 'Frantically' Selling Coins for Ethereum (ETH) on Hyperliquid (https://dailyhodl.com/2025/08/26/bitcoin-whale-with-11400000000-in-btc-frantically-selling-coins-for-ethereum-eth-on-hyperliquid-lookonchcain/)

[3] Bitcoin Whale Rocks Crypto Markets (https://thedefiant.io/bitcoin-whale-rocks-crypto-markets)

[4] Hyperliquid Surpasses Robinhood in Monthly Trading Volume for the Third Consecutive Month (https://cryptoslate.com/hyperliquid-surpasses-robinhood-in-monthly-trading-volume-for-the-third-consecutive-month/)

[5] Ethereum, ETH Treasuries at 'Good Entry Point' After Market Correction (https://finance.yahoo.com/news/ethereum-eth-treasuries-good-entry-140643998.html)