Bitcoin (BTC) has experienced increased volatility in recent days, a trend that has aroused many questions among market observers. Some commentators believe that this irregular movement is linked to the activities of the first BTC investors, often called “OG whales”.
In short
- Bitcoin dropped 2.2 % in 9 minutes, erasing $ 45 billion of value during a sudden lightning crash caused by a whale.
- A whale has sold more than $ 2 billion in BTC, buying 416,000 ETH and reshaping the feeling of the market by an aggressive capital rotation.
- The whale involved 275,000 ETH and opened huge long positions on perpetual contracts, making a profit of $ 185 million.
- Despite these important movements, the whale still controls 152,874 BTC, which encourages traders to remain cautious in the face of increased volatility.
Whale rotations trigger a sudden bitcoin sale
During the session on Sunday, Bitcoin dropped by more than 2 % in less than 10 minutes, attracting the attention of traders to X. The commentator Willy Woo allocated this movement to the on-chain of the OG whales.
The latter are large addresses that have accumulated bitcoin at $ 10 or less during the 2011 cycle. According to Woo, it takes more than $ 110,000 in fresh capital to compensate for each bitcoin sold by these former wallets.
This difference in the basic cost, the quantity held and the pace of sale has a deep impact on the capital necessary to bring the price back
Willy Woo
The recent trend occurs while Bitcoin suffered a capital erosion of $ 45 billion on Sunday. Many within the Crypto community highlighted a capital rotation of a Bitcoin BTC whale towards Ethereum as the reason for this drop in capitalization.
According to discussions, the whale has converted more than $ 2 billion in Ether in the last seven days, fueling the sales pressure on the market. This sudden fall in prices has erased almost 2.2 % of the value of the OG room, passing it from $ 114,666 to $ 112,546 in nine minutes.
Ether also dropped by 4 %, from $ 4,937 to $ 4,738 during the same period, although the two active people then recovered modestly after the lightning crash.
A whale moves 2.7 billion BTC in ETH purchases and 1.3 billion in sting
On August 16, a crypto whale moved bitcoin to the decentralized hyperliquid cryptocurrency platform. According to Blockchain.com data, The whale transferred 24,000 BTC ($ 2.7 billion) via six transactions spanning the last nine days.
Analyst Crypto MLM noted that around 18,142 BTC, worth 2.04 billion dollars, have already been sold. He added that 1.9 billion of this amount was used to buy 416,598 ETH.
The analyst also specifies that this address is linked to other portfolios moving bitcoin to hyperliquid for more purchases from Ether.
Here are other activities carried out by the whale:
- Current sale of 5,968 BTC ($ 670 million), with 4,968 BTC (≈560 million dollars) still outside of hyperliquid.
- Assum of around 275,500 ETH, totaling about $ 1.3 billion according to current courses – a movement seeming to be a long -term strategy.
- Opening of 135,263 ETH ($ 642 million) in perpetual long positions, for a total exposure of 551,861 ETH (approximately 2.62 billion dollars).
According to MLM, the long entries have been timed to get ahead of other fast players, resulting in the benefit of $ 185 million on the ETH/BTC trade:
He was ahead of those who tried to get ahead of it.
Mlm
He admitted that then that the market participants reacted positively to the previous spot purchases of the whale, the long Eths positions have grown value. But a series of sales orders followed when the whale began to close its positions, and the traders finally identified its strategy.
The BTC whale moves funds while capital turns to Ethereum
The founder of Timechainindex.com, Sani, said that the Bitcoin whale still holds around 152,874 BTC in several wallets. In a post X, he explained that the funds had initially been moved from the HTX Crypto HOOBI platform in 2019 and had remained dormant until last week.
Sani also indicated that another large BTC holder had separated from around 670 bitcoins ($ 76 million) to open a long position on Ether on Thursday, accentuating the current BTC capital rotation trend towards ETH. Ethereum reached a new historic record on Sunday, while Bitcoin fell below $ 111,000 during a particularly volatile market session.
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