NewsBTC
Aug 26, 2025
4 0

Bitcoin Prices Drop Following Large Holder Transfers and Market Reactions

A large holder's activity has caused significant fluctuations in Bitcoin prices this week.

Old Whales Hold Deep Profit

  • Supply is tightly held by original holders ("OG whales") who acquired Bitcoin around 2011 at approximately $10.
  • It now requires roughly $110,000 of new capital to absorb each Bitcoin these holders choose to sell.
  • This concentration contributes to slow price movements despite increased market interest.
  • A single whale's transition from Bitcoin to Ether triggered a rapid sell-off, reducing Bitcoin's market cap by about $45 billion.

Flash Crash Unfolded Quickly

  • Bitcoin dropped from $114,500 to $112,980 within nine minutes, briefly reaching $112,050.
  • Ether fell 3.8%, from $4,925 to $4,680, later recovering partially.
  • A chain of transfers led to this movement.

Whale Rotations And Large Transfers

  • About 24,000 BTC (~$2.7 billion) was transferred to Hyperliquid across six transactions since August 16.
  • 18,142 BTC was sold, with proceeds converted into 416,590 ETH; 275,500 ETH was staked, valued at ~$1.3 billion.
  • The whale took leveraged positions, longing 135,260 ETH on Hyperliquid, totaling over $2.6 billion in exposure.
  • This trade reportedly generated around $185 million.

Forces At Work

  • The whale still controls 152,874 BTC across multiple addresses, originally moved off an exchange six years ago.
  • Market dynamics involve dormant holders with unrealized gains and active traders engaging in large rotations for short-term profits.
  • A potential increase in BTC sales could test market demand, while the amount of staked ETH indicates some long-term intentions from major players.

Featured image from Meta, chart from TradingView