Whale Dump Blamed for Bitcoin Flash Crash: Shifts $2B to ETH

Bitcoin just had a $45 billion problem and it may come down to a single whale.

Over the past week, a longtime Bitcoin holder offloaded more than 18,000 BTC, rotating $2 billion into Ethereum. That move triggered a market-wide selloff and a rare flash crash, sending Bitcoin plunging to $112,000 on Sunday.

This isn’t just another whale dump. It’s a strategic reshuffling from Bitcoin to ETH, using leverage, staking, and DeFi rails. It also exposed how concentrated BTC supply still is and how easy it is for legacy whales to rattle the entire market.

From Dormant Wallets to Hyperliquid Dump

Blockchain sleuths tracked six large transfers totaling 24,000 BTC ($2.7B) sent to Hyperliquid, a decentralized perpetuals exchange, starting August 16.

Of that, $2B worth of BTC has already been sold and swapped into over 416,000 ETH. Around $1.3B worth of ETH has been staked, signaling a long-term bet.

Crypto analyst MLM says the whale then longed 135,000+ ETH, driving the ETH/BTC trade into profit. At one point, the whale held over 550,000 ETH in exposure, worth more than $2.6 billion, netting an estimated $185M in profit.

As the whale began closing positions, other traders panicked. The selloff accelerated. Bitcoin dropped from $114,666 to $112,174 in under an hour.

OG Bitcoin Whales Still Dictate the Market

Analyst Willy Woo weighed in on X, blaming the slow price grind on Bitcoin’s oldest whales, whose holdings date back to 2011.

“They bought at $10 or less,” Woo noted. “Now it takes $110K+ in fresh capital to absorb every BTC they sell.”

Translation: new money can’t keep up. And when old wallets move, the market moves with them – hard.

The Fallout and What’s Left

• $310M in long positions were wiped out during the flash crash, per market data.
• Another whale reportedly sold 670 BTC last Thursday to long ETH.
• The original whale still holds over 150,000 BTC, some untouched for 5+ years.

According to researcher Sani (TimechainIndex), the stash originated from HTX (formerly Huobi) about six years ago and had remained dormant until now.

That supply is now back in play.

This wasn’t just a market dip, it was a reminder of who still holds power in crypto.

One whale used DeFi, leverage, and timing to reshuffle billions, profit handsomely, and leave wreckage behind. Until that old supply is fully absorbed, Bitcoin’s biggest headwind might be its own history.

Bitcoin Whale Sell-Offs Over The Years

Date	Event	Details	Impact
Aug 24–25, 2025	Whale Sells 24,000 BTC	~$2.7B dump triggered a flash crash. Suspected leverage and ETH conversion strategy.	Price dropped over 2% in minutes (~$4K drop).
July 2025	80,000 BTC Long-Term Sale	Early holder sold $9.6B worth, coordinated via Galaxy Digital.	Only 1% dip, quickly recovered.
Feb 2025	ETF Outflows	$3.3B pulled from ETFs by institutions (“fast money”).	Monthly drop of 17.2% in BTC price.
Late 2024	Profit-Taking Near $100K	507K BTC moved from dormant wallets; $438M ETF outflows.	BTC rally stalled near $100K.
Mid 2024	Mt. Gox Repayment Fears	Concerns over large BTC distribution from trustee.	Price fell 8% in one day, 12% in a week.