Ethereum News Today: Ancient Bitcoin Whale Shifts $334M to Bet Big on Ethereum's Next Move

A significant shift in the crypto market emerged as an “ancient” whale, holding a long-dormant Bitcoin wallet, activated substantial transfers and leveraged positions in Ethereum. According to on-chain data, the wallet, first active in 2013, contained approximately 14,837 BTC and had been dormant for over a decade before reactivating on August 21, 2025. Within the first 24 hours, it moved about 400 BTC to Ethereum on Hyperliquid, with further trades expanding to a total of approximately 2,970 BTC sold in the following 24 hours, valued at around $334 million. These assets were converted into 50,470 ETH in spot trades and 135,263 ETH in leveraged long positions, totaling 185,733 ETH and a nominal exposure of approximately $790 million [1].

The whale’s activity appears to be concentrated across four wallets, each carrying leveraged positions ranging from 3x to 10x. This aggregation of exposure amplifies the market’s sensitivity to volatility and potential liquidation events. At the time of the transactions, the leveraged long positions equated to approximately 68,130 ETH, with an indicative value of about $295 million, and the combined exposure from all positions reached a peak of around $790 million in nominal terms [1].

Market analysts observed that the whale’s strategy may have been influenced by Ethereum ETF outflows, which totaled about $678 million over three consecutive sessions. These outflows, particularly from large fund managers such as BlackRock, Fidelity, and Grayscale, reduced net institutional demand for Ethereum and increased the asset’s susceptibility to short-term shocks. The coincidence of these movements with leveraged long positions in Ethereum raises concerns about the potential for cascading liquidation events, especially if price volatility increases or liquidity is insufficient to absorb sudden sell-offs [1].

The whale’s strategy could be interpreted in multiple ways. One interpretation is a bullish bet on Ethereum ahead of anticipated catalysts, such as further upgrades or regulatory clarity. Another suggests a tactical rotation, exploiting arbitrage opportunities between Bitcoin and Ethereum derivatives markets, with a potential re-entry into Bitcoin once specific price targets are met. Similar historical movements by dormant wallets have previously coincided with periods of heightened volatility and rapid rebalancing between the two cryptocurrencies [1].

The market is now closely monitoring the duration of these positions and key technical levels to determine the strategy’s success. In the short term, further ETH ETF outflows or inflows could shift the market balance. Analysts are also tracking leverage metrics on Hyperliquid and on-chain activity for signs of continued BTC-to-ETH transfers. Given the whale’s current unrealized gains from its ETH positions—estimated at $84 million—any rapid price corrections could trigger margin calls or forced liquidations across the aggregated leveraged exposure [2].

Source:

[1] Historic whale moves 400+ BTC to ETH and opens long for ... (https://en.cryptonomist.ch/2025/08/21/historic-whale-moves-400-btc-to-eth-and-opens-long-for-295m-market-on-alert/)

[2] A certain ancient whale has once again thrown 2970 BTC ... (https://www.lookonchain.com/feeds/25648)