• A Bitcoin whale sold 24,000 BTC, causing a $4,000 drop and sparking panic across the crypto market.
• Over $2 billion moved into Ethereum after the Bitcoin selloff, with most of it going into staking.
• Older Bitcoin whales are slowly exiting, which puts pressure on the price and slows down upward movement.

A large Bitcoin whale triggered a sharp drop in the crypto market on Sunday. The entity sold 24,000 BTC, valued at $2.7 billion. This move led to a rapid $4,000 price drop within minutes. 

Even after the sale, the whale retains 152,874 BTC with a value greater than 17 billion USD. Based on the blockchain data, the coins had lain dormant for over five years before they were transferred.

Chain Reactions Across Exchanges

The whale sent 12,000 BTC to the Hyperunite platform in a single day. The transactions between August 16 and August 24 ranged from 3,000 BTC to 6,000 BTC. Each was sent to a different address. 

These transfers caused concern among traders. Many followed with their own sell-offs, deepening the crash. Bitcoin fell 2.2%, dropping from $114,666 to $112,174 in under an hour. Ethereum also declined, losing nearly 4% and reaching a low of $4,738.

Capital Rotates Into Ethereum

Analysts tracked significant shifts in capital post-sale. Around $2 billion moved into Ethereum. Of that amount, $1.3 billion was staked. Two whale entities reportedly bought 416,598 ETH combined. A total of 275,500 ETH from that amount was moved into staking. Another whale sold 670 BTC, worth $76 million, to open a long ETH position. This indicates a trend of rotating Bitcoin profits into Ethereum.

In May, Jacob King, CEO of WhaleWire, said he believed Bitcoin was headed for a massive crash after its surges formed a double top.

Whale Activity Slows Bitcoin Recovery

Experts suggest this whale behavior reflects market maturity. Many of these whales purchased Bitcoin at under $10. Now, it takes over $110,000 in new capital to absorb each BTC sold. This shift impacts Bitcoin’s upward momentum. Long-term holders are gradually exiting as prices hit their targets. While the price dipped briefly, Bitcoin later regained some value, trading near $113,169. Ethereum followed a similar recovery pattern.

Short-term technical indicators suggest oversold conditions. However, analysts see no reversal signals yet. Some believe momentum will return once prices move above $113,500. Institutional flows also point toward growing interest in Ethereum. ETFs linked to ETH have seen higher inflows in recent weeks compared to Bitcoin ETFs.

Many large investors appear to be rebalancing their portfolios. As a result, Ethereum continues to attract more capital. The recent flash crash highlighted the growing influence of older Bitcoin whales. Their activity shapes price movement due to the volume they control. The market now watches for the next major move as these shifts continue.