An influential Bitcoin whale, known for previously rotating $5 billion worth of BTC into Ether, has returned to activity after two months. The blockchain analytics platform Arkham reported a Bitcoin whale movement valued at $360 million. The funds were sent directly to a hot wallet belonging to the decentralized finance (DeFi) protocol Hyperunit.
This transaction is significant due to the investor’s history. Two months ago, this same entity surprised the market by converting a massive portion of its Bitcoin holdings into Ether, briefly surpassing the ETH reserves of large companies. The new move has sparked speculation about whether it is preparing for a second asset rotation or a strategic sale. Currently, the whale’s main wallet still holds over $5 billion in BTC.
The pattern repeats: Another rotation into Ether?
This whale’s past behavior suggests a clear pattern. In August, it began its strategy by selling $2.59 billion of BTC to acquire $2.2 billion in spot Ether and open a $577 million perpetual futures long position. This strategy inspired other investors, as nine whale addresses acquired $456 million in ETH shortly after, demonstrating its market influence.
The destination of the current $360 million to a DeFi protocol could be the first step in facilitating a new swap for Ether or other assets in the ecosystem. If history repeats itself, it could signal renewed confidence in Ethereum’s potential over Bitcoin in the short term, exerting additional selling pressure on the market’s leading cryptocurrency.
Market context: Beyond a single whale
While this event is grabbing headlines, it is not an isolated incident. CryptoQuant analyst Maartunn noted that Bitcoin holders who have been dormant for three to five years recently moved a cumulative $3.93 billion. This is the largest transfer of the year for that cohort, suggesting that long-term investors are also repositioning their assets.
Experts like analyst Willy Woo have pointed out that selling by “OG whales” (early investors) is one of the factors limiting Bitcoin’s price appreciation. However, not all outlooks are bearish. Ryan Lee, chief analyst at Bitget, stated that Bitcoin continues to attract capital as a scarce, non-sovereign asset, especially in an environment of rising federal debt.
The market is at a crossroads. On one hand, moves like this whale’s and other long-term holders’ suggest potential profit-taking or rotation into altcoins. On the other hand, analysis from firms like Matrixport indicates that Bitcoin’s dominance is reasserting itself, reversing the trend of recent months and signaling that BTC is once again leading the current cycle, despite constant calls for an “altcoin season.”
