Bitcoin whales awaken! Selling $90 million BTC to invest in Ethereum, splurging $295 million to open long ETH leveraged positions.

The dormant Bitcoin Whale from the early days, which had been silent for seven years, suddenly woke up and sold over $90 million worth of BTC through the decentralized exchange Hyperliquid, significantly shifting its position to Ethereum. This Whale simultaneously opened leveraged long positions in ETH worth a total of $295 million through four wallets, coinciding with a $678 million outflow of funds from the Ethereum ETF and severe fluctuations in price around the $4,000 mark.

Bitcoin whale moves for the first time in seven years, large fund transfers attract market attention An early Bitcoin Whale has resurfaced recently, conducting a cryptocurrency reallocation operation worth hundreds of millions of dollars, transferring funds on a large scale between Bitcoin and Ethereum. According to Onchain Lens data, a wallet that withdrew 14,837 BTC (worth $94.9 million at the time) seven years ago has deposited 660 BTC into the decentralized exchange Hyperliquid in the past 20 hours.

Whales sell BTC to switch to ETH, with total leveraged long positions reaching $295 million The Whale, after selling off most of the BTC, has turned to aggressively building positions in Ethereum and opening high-leverage long positions. Latest on-chain activity shows that another 400 BTC (worth $45.5 million) were deposited into Hyperliquid and exchanged for ETH through the spot market. Subsequently, these ETH were bridged back to the Ethereum mainnet, ultimately aggregating to 11,744 ETH (worth $50.6 million).

What is more striking is that the Whale has opened a total of 68,130 ETH (worth $295 million) in leveraged long positions through four different wallets, with leverage ratios ranging from 3x to 10x. Screenshots shared by Onchain Lens show that the unrealized positions of each wallet are valued between $90 million and $99 million.

Whale behavior reflects cyclical changes, long-term BTC holders shift to ETH positioning This active operation highlights a significant shift in Whale behavior during this period—some long-term Bitcoin holders are reallocating funds to Ethereum to capture the accelerating market momentum of ETH. Recently, Ethereum has risen in sync with Bitcoin, attracting Whales in the derivatives market to seek higher return potential through leveraged operations.

Ethereum ETF faces significant capital outflow, with a net outflow of $678 million over three days Reports indicate that Ethereum fell to $4063 on Wednesday, following a wave of forced liquidations and a collective dumping by ETF giants: BlackRock, Fidelity, and Grayscale sold a total of $422 million worth of ETH within 24 hours. This movement has shaken investor confidence and sparked a debate over whether Ethereum's 200% surge in recent months has peaked.

SoSoValue data shows that this redemption marks the third consecutive day of capital outflows from the ETF, with a total of $678 million withdrawn over three days. Fidelity leads with a redemption amount of $156 million, followed by Grayscale at $122 million, while Bitwise, VanEck, and Franklin Templeton also experienced significant dumping. Despite ETH briefly rebounding to $4223 after testing the $4063 support, market pressure remains high.

Analyst Warning: ETH Rise May Lead to Funds Eventually Flowing Back to BTC Bitcoin advocate Samson Mow (CEO of Bitcoin adoption company Jan3) pointed out that the recent surge of Ethereum may lay the groundwork for a reversal, with funds eventually flowing back to Bitcoin. He noted that many long-term ETH holders (especially early participants from the ICO era) already hold a significant amount of Bitcoin, and the current rotation from BTC to ETH is to leverage new narratives like the "Ethereum treasury company" to drive the market.

Mow predicts that once the price rises sufficiently, these investors will sell ETH to cash out, creating a "new generation of bag holders," and will transfer the profits back to Bitcoin. "No one really wants to hold ETH long-term," he emphasized.

[Conclusion] The cross-chain reallocation and high-leverage operations of whales reflect a new dynamic of capital flow in the cryptocurrency market. Although Ethereum faces pressure from ETF fund outflows and price fluctuations in the short term, institutional-level capital allocation still shows recognition of its long-term value. Investors need to be cautious of high leverage risks while paying attention to the ongoing evolution of the capital rotation between the two major assets, Bitcoin and Ethereum.