Bitcoin whale sells $2.7B, triggers $4K ETH price crash

A major market shakeup occurred over the weekend when a Bitcoin whale sells event triggered billions in liquidations. On Sunday, a single entity offloaded 24,000 BTC worth roughly $2.7 billion within hours, driving Bitcoin’s price down by $4,000 to touch support levels near $113,000.

Despite the sale, the whale still controls 152,874 BTC, valued at more than $17 billion at current market prices. According to on-chain analyst Sani, founder of the Timechain Index, the coins had been dormant for over five years before being transferred to the Hyperunite trading platform.

“On Sunday alone, 12,000 BTC was sent to Hyperunite and the whale is still actively selling,” Sani said in a post on X (formerly Twitter).

The rapid move highlights the continued influence of early adopters and long-term holders in shaping Bitcoin’s short-term market trajectory.

Why Bitcoin whale sells are slowing the market cycle

The weekend’s activity underscores a broader trend: Bitcoin whale sells are playing a central role in the asset’s muted recovery during this cycle. Prominent Bitcoin analyst Willy Woo noted that many large holders accumulated their BTC as early as 2011, often at prices below $10.

“They bought their BTC at $10 or lower. It takes $110K+ of new capital to absorb each BTC they sell,” — Willy Woo, Bitcoin analyst, in a post on X.

This mismatch between the whales’ cost basis and current prices means that even relatively small sell-offs require vast inflows of new capital to sustain upward momentum. As more early holders liquidate, it creates headwinds for a sharp price rally.

Adding to this pressure, analysts have tracked significant rotation from Bitcoin into Ethereum. Crypto researcher MLM reported that one whale sold 18,142 BTC worth over $2 billion and redirected most of the proceeds into ETH. According to MLM, the two largest entities have purchased 416,598 ETH combined, worth about $1.98 billion, with 275,500 ETH now staked.

Panic selling and Ethereum rotation fuel volatility

The Bitcoin whale sells phenomenon has not occurred in isolation. Market observers note that these large moves often trigger a chain reaction among retail and institutional traders alike.

“Once the whale started selling, it triggered a panic cascade, with other traders selling too, amplifying the crash,” — Jacob King, CEO of WhaleWire, on X. “Most of the money is being moved into Ethereum, $2B bought and $1.3B staked.”

Last week, another whale sold 670 BTC worth $76 million to open a leveraged long position in ETH, reinforcing the view that capital is shifting toward Ethereum in the current market phase.

This behavior suggests that while Bitcoin remains the market leader, its dominance may face temporary challenges as whales diversify into alternative assets. For crypto investors, tracking where this capital flows next could be crucial for anticipating market movements.

Can Bitcoin recover after the whale-driven drop?

As of early Monday, Bitcoin was trading at around $112,700, down 2.12% over 24 hours, with a low of $110,500 recorded during the sell-off, according to CoinMarketCap data. The relative strength index (RSI-7) sat at 40.72, suggesting oversold conditions but offering no clear reversal signal.

Despite short-term volatility, some analysts argue that Bitcoin whale sells are not necessarily bearish. Alex Krüger, founder of Aike Capital, suggested that once short-term momentum clears, Bitcoin could rebound above $113,500–$114,000.

Vijay Boyapati, author of The Bullish Case for Bitcoin, went further, framing the whale activity as part of Bitcoin’s natural monetization cycle.

“The price has stalled because a number of whales have hit their magic number and are unloading,” Boyapati wrote. “This is healthy — their supply is finite, and their selling is required for the full monetization of Bitcoin.”

For long-term investors, the weekend’s turmoil may signal both risk and opportunity. If whales continue to rotate into Ethereum or cash out significant holdings, Bitcoin may struggle to sustain rallies. But as Boyapati and others suggest, the eventual depletion of whale supply could set the stage for more organic, demand-driven price growth.

Massive $BTC Whale Dump Crashed the Market 📉

A whale dumped 24,000 BTC (~$2.7B) across major exchanges.

This triggered a $4K drop in minutes, causing a liquidation cascade not a natural correction.

No major news or macro catalyst caused this.

Even $ETH hit a local high just… pic.twitter.com/ccmYwsWhOM

— ZYN (@Zynweb3) August 25, 2025 

Outlook for crypto investors

The latest Bitcoin whale sells episode highlights the delicate balance between early holders and new market entrants. While the immediate effect was a sharp $4,000 crash, the broader picture suggests that whale supply is finite and may eventually shift power to smaller investors and institutions willing to absorb the sell pressure.

With over $2 billion moving into Ethereum and $1.3 billion staked, diversification among whales could reshape market dynamics in the months ahead. For now, Bitcoin’s support zone near $110,000 will be closely watched, as traders weigh whether the recent cascade marks a temporary correction or a longer-term consolidation phase.