Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
A significant Bitcoin whale, previously noted for exchanging $4 billion in Bitcoin for Ether last month, has recommenced selling its BTC holdings. On Sunday, the whale deposited 1,176 BTC, valued at over $136 million, onto the Hyperliquid trading platform, prompting observers to suggest a new “dumping” phase as Bitcoin’s price hovers around the $116,000 level.
Whale Resumes Selling After Brief Pause
The recent deposit marks a resumption of activity from a long-term Bitcoin holder whose wallets had been dormant for over eight years. According to blockchain analytics firm Lookonchain, the whale had taken a two-week break after a substantial movement in the second half of August.
During that period, Lookonchain reported on September 1 that the same whale had sold approximately 35,991 BTC, worth over $4 billion at the time, converting it into Ether. Such large-scale movements by long-term holders, often dubbed “smart money,” are closely watched by traders for potential shifts in market sentiment or price impact.
Implications for the Market
Whale activity, especially after years of dormancy, can signal a potential negative impact on Bitcoin’s price. When large amounts of BTC are moved to exchanges, it often suggests an intent to sell, which can increase supply on the open market and exert downward pressure on prices.
The ETH to BTC ratio has remained relatively stable since the whale’s initial swap, but it currently sits at 0.0401, having gained 6% over the past month. If the whale were to convert their Ether holdings back to Bitcoin now, they would incur a loss of approximately 460 BTC, equivalent to about $53 million.
Bitcoin Price Struggles at Resistance
Amidst this whale activity, Bitcoin has faced significant resistance at the $116,000 price point. The cryptocurrency briefly touched this level on Friday, marking its first return since August 23, but has struggled to sustain a breakout above it.
Over the past 24 hours, Bitcoin has traded largely flat around $115,500, with a high of $116,182 and a low below $115,000. This current stagnation follows a 7% decline from its recent peak of over $124,000 recorded on August 14.
Broader Whale Movements
The recent sales by this particular whale are not isolated incidents. The past few weeks have seen other high-value, long-dormant Bitcoin wallets become active. For instance, a wallet holding nearly 445 BTC, untouched for almost 13 years, made a transfer last Thursday, sending a portion of its funds to the Kraken crypto exchange.
Earlier in September, another wallet containing nearly 480 BTC also made its first transfers since 2012, though these movements appeared to be for relocating funds to a new address rather than selling.
Key Takeaways
The continued selling by a major Bitcoin whale, coupled with other dormant wallets showing activity, introduces an element of uncertainty into the market. As Bitcoin struggles to break past key resistance levels, these large-scale movements by long-term holders are being closely monitored for their potential influence on price stability and overall market sentiment.
