A $2.7B Whale Flip from Bitcoin to Ethereum Ignites Market Chaos

In a major shift within the cryptocurrency market, crypto whales—large investors with significant digital asset holdings—have recently moved $456 million from Bitcoin (BTC) to Ethereum (ETH), triggering short-term volatility and raising questions about the broader implications of such movements. The shift, attributed to a single whale transferring 24,000 BTC (approximately $2.7 billion) into ETH over a nine-day period, led to a sharp sell-off in BTC and a corresponding decline in ETH prices, before both assets partially recovered.

Blockchain data from sources such as Arkham Intelligence and Hyperliquid shows that 18,142 BTC, valued at $2 billion, had already been sold, with nearly all converted into 416,598 ETH, totaling around $1.98 billion. An additional 5,968 BTC ($670 million) was being sold at the time of the report. A portion of the ETH acquired was staked, suggesting the whale’s strategy may be long-term in nature. The whale also took long positions in ETH, totaling 551,861 ETH, worth over $2.6 billion, which contributed to the initial price increase in ETH before the position closures led to a cascade of sell-offs.

This whale’s actions highlight the significant influence that large-scale investors can have on market dynamics. Analysts have noted that the whale’s trades were designed to front-run other traders, netting an estimated $185 million in profit from the ETH/BTC trades. The strategy involved leveraging large positions to trigger price movements, which other traders reacted to before the whale began closing longs, prompting further market reversals.

The sell-off on August 24 saw Bitcoin drop nearly 3.6% in 10 minutes, with CoinGlass data showing $218.29 million in BTC long liquidations—its largest event since early August. Ethereum also declined sharply, dropping 4% in the same timeframe. The flash crash was attributed to a combination of the whale’s movements, the timing of futures expirations, and the resulting market psychology.

In the wake of the sell-off, Binance recorded $1.65 billion in stablecoin inflows, a sign that traders were using these funds to re-enter positions in the market, according to onchain analytics firm CryptoQuant. This movement suggests a potential return of buying pressure and renewed confidence in spot markets, especially as traders digest the recent volatility.

The trend of whales rotating from BTC to ETH appears to be part of a broader market narrative favoring Ethereum. Ether has surged 220% since its recent lows in April, outperforming Bitcoin and other major cryptocurrencies like Solana. Institutional adoption and the rise of Ethereum-based stablecoins and DeFi protocols have reinforced the narrative, with Ethereum-based projects seeing increased demand and investment.

While the whale activity has raised concerns about short-term market instability, the broader trend appears to support Ethereum’s long-term growth. Analysts such as Tom Lee have projected ETH could reach $15,000 by the end of 2025, highlighting the growing importance of Ethereum as a foundational blockchain for decentralized finance and real-world asset tokenization.

Source:

[1] 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)

[2] What are Crypto Whales and How Do You Track Them? (https://www.tokenmetrics.com/blog/crypto-whale?0fad35da_page=2&74e29fd5_page=2)

[3] Crypto Whales Are Moving Again – Stablecoin Inflows Point to Bitcoin Buying Power (https://coindoo.com/crypto-whales-are-moving-again-stablecoin-inflows-point-to-bitcoin-buying-power/)

[4] Getting ETH Exposure in 2025: Ether Near Record Highs and Tom Lee Can See USD15K by Year End (https://www.coindesk.com/markets/2025/08/24/getting-eth-exposure-in-2025-ether-near-record-highs-tom-lee-can-see-usd15k-by-year-end)

[5] Massive Ethereum Whale Stakes $2.5B ETH In Single Move (https://www.mitrade.com/insights/news/live-news/article-3-1070577-20250827)

[6] Why Did Bitcoin Suddenly Flash Crash To … (https://www.mitrade.com/insights/news/live-news/article-3-1065908-20250825)