A massive Bitcoin whale, dormant for nearly seven years, has re-entered the market, triggering a wave of liquidations and shifting capital toward Ethereum and other altcoins [1][2]. According to on-chain data from Lookonchain and Decrypt, the whale moved approximately 670 BTC on August 21, valued at over $628 million at current prices [1][2]. While this represents only a fraction of the whale’s total holdings—14,837 BTC, worth around $1.67 billion—the move sent ripples through the market, amplifying volatility and raising concerns over potential further liquidations.
This significant activity coincided with a broader market shift toward Ethereum, as capital flowed out of Bitcoin and into alternative assets offering greater versatility and innovation [2]. On-chain analytics revealed that some long-dormant Bitcoin wallets were reawakening and reallocating funds to Ethereum, signaling a strategic shift rather than a short-term tactical move [2]. The whale itself retained the majority of its BTC holdings, but increased its Ethereum position by approximately 278,490 ETH [1].
The movement also highlighted key support and resistance levels for Ethereum. Traders are closely watching the $4,200 support level and the $5,000 resistance level. A break above $5,000 could extend Ethereum’s rally and trigger further liquidations, while a drop below $4,200 could reignite bearish sentiment [2]. Analysts noted that the whale’s reentry into the market underscores the increasing influence of large, strategic players in shaping short-term price dynamics [2].
The whale’s activity did not occur in isolation. Binance’s on-chain data showed aggressive Ethereum accumulation, with large holders and institutional wallets increasing their exposure to the second-largest cryptocurrency [3]. This activity was reflected in Ethereum’s market performance, as the token moved closer to its all-time high. The broader crypto market also experienced heightened volatility as traders adjusted positions in response to shifting capital flows [3].
With leveraged positions across major exchanges coming under pressure, the risk of cascading liquidations increased. Analysts warned that a drop in leveraged positions or a reversal in macroeconomic expectations could create a more cautious trading environment [4]. The reactivation of long-dormant wallets provides valuable on-chain insights into the intentions of major market participants. In this case, the whale’s decision to rotate capital into Ethereum suggests a belief in the network’s long-term potential, particularly as it continues to evolve with upgrades and adoption [2].
The reawakening of a seven-year dormant Bitcoin whale serves as a reminder of the unpredictable nature of crypto markets, where a single large move can shift sentiment and trigger broader market reactions [1][2][3].
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Source:
[1] title: Ethereum News Today, url: https://decrypt.co/crypto-news/ethereum
[2] title: ETH ATH: 7-Year Dormant BTC Whale Rotates to … , url: https://blockchain.news/flashnews/eth-ath-7-year-dormant-btc-whale-rotates-to-eth-builds-650m-eth-longs-and-105-599-eth-spot-120m-unrealized-pnl-on-chain-address-0x9fc3
[3] title: Latest ETHInstitutionalFlows News, Opinions and Feed …, url: https://www.binance.com/en/square/hashtag/ETHInstitutionalFlows
[4] title: Bitcoin OG Whale Pivots to Ethereum Amid Market Shift, url: https://www.ainvest.com/news/bitcoin-news-today-bitcoin-og-whale-pivots-ethereum-market-shift-2508/
