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A long-term Bitcoin holder has resumed Bitcoin dumping after briefly pausing in late August, raising market concerns just as Bitcoin struggled at the $116,000 resistance level. According to blockchain analytics firm Lookonchain, wallets tied to the same address deposited 1,176 BTC, worth more than $136 million, into the crypto exchange Hyperliquid on Sunday and “started dumping.”
The wallet, inactive for more than eight years, previously offloaded nearly 36,000 BTC worth over $4 billion for Ether between August 15 and August 30. That large-scale move marked one of the most significant Bitcoin-to-Ether reallocations ever recorded on-chain.
“This kind of concentrated selling by dormant whales is rare but impactful, often signaling profit-taking or strategic repositioning,” — Clara Medalie, Director of Research, Kaiko, told Bloomberg.
The renewed Bitcoin dumping underscores the influence of whale activity on market sentiment. Analysts say such movements can unsettle traders, especially when prices hover at key technical levels.
“When long-dormant wallets start selling, it shakes confidence. Retail investors interpret it as a bearish signal, even if the whale is just rebalancing,” — Noelle Acheson, Macro Analyst, Crypto Is Macro Now.
The ETH/BTC ratio has remained below 0.05 for over a year, highlighting Ether’s relative weakness against Bitcoin. By moving into Ether at scale, the whale risks losing out on Bitcoin upside if the ratio fails to recover. As of Sept. 12, the whale would have lost roughly 460 BTC (around $53 million) if they converted their Ether back into Bitcoin.
Despite the whale’s Bitcoin dumping, the market has shown some resilience. Bitcoin briefly touched $116,182 over the weekend before retreating below $115,500, leaving traders watching whether it can decisively break through resistance.
Bitcoin remains down 7% from its August 14 peak above $124,000, with momentum capped by macroeconomic uncertainty and whale-driven sell pressure.
“The $116K level has become a psychological barrier. If breached, it could trigger momentum buyers, but repeated whale selling makes that difficult,” — Markus Thielen, Head of Research, 10x Research.
The latest Bitcoin dumping is not an isolated event. Blockchain data shows multiple dormant wallets moving large sums in recent weeks. On Sept. 5, a wallet holding nearly 480 BTC, inactive since 2012, transferred its balance to a new address. Similarly, on Sept. 8, a 13-year-old wallet with 445 BTC moved funds, sending part to the exchange Kraken.
Such moves suggest a broader pattern of profit realization among early holders, especially with Bitcoin trading above $115,000. While not all sales immediately hit exchanges, the activity has fueled speculation about increased supply hitting the market.
On-chain analysts argue that these transfers could also be linked to inheritance settlements, custodial shifts, or security upgrades rather than outright liquidation. Still, the optics of Bitcoin dumping from wallets untouched for a decade or more often spooks retail traders, who fear cascading sell pressure.
At the same time, some market strategists view the renewed whale activity as a sign of maturity in the crypto cycle.
“When early adopters finally move coins, it often reflects confidence that liquidity is deep enough to handle large trades without destabilizing the market,” — James Butterfill, Head of Research, CoinShares.
For crypto investors, the resurgence of Bitcoin dumping highlights the outsized role whales play in shaping market dynamics. Large sell-offs from previously inactive addresses can amplify volatility and stall rallies, even when broader sentiment is bullish.
Some analysts argue that the whale’s pivot into Ether could eventually prove prescient if Ethereum benefits from scaling upgrades and institutional adoption. Others caution that persistent selling pressure from dormant Bitcoin holders could limit short-term upside.
With whale activity rising and resistance firm at $116,000, traders may need to brace for continued choppy markets. For now, the spotlight remains on whether whales continue to drive Bitcoin dumping or if demand from institutions and ETFs can absorb the supply.
