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Summary
- A Bitcoin whale, dormant for the past seven years, has resurfaced to sell some of its Bitcoin assets.
- The seller has redirected the earnings into significant leveraged long positions on Ethereum, viewed by analysts as a calculated move anticipating ETH’s growth.
- Though this unusual transfer could stir market fluctuations, experts feel that the current developed market can better manage such large transactions compared to previous times.
An old-school Bitcoin whale has made the decision to exchange part of its holdings for leveraged long positions in Ethereum.
The whale retained 14,837 BTC valued at $1.67 billion, remaining inactive for more than seven years leading up to this action.
On August 21, this dormant whale moved about 670 BTC, currently valued at $75 million, distributing it across four wallets to establish leveraged long positions on Ethereum, showcasing a significant asset shift that hints at bullish sentiment towards the second-largest cryptocurrency by market cap.
As of this writing, ETH is trading at $4,296.25, reflecting a 4.1% increase in the last 24 hours, yet remains 6.4% lower than last week when it approached its peak value.
“This movement indicates a resurgence of long-dormant BTC whales,” said Slava Demchuk, CEO of blockchain analytics company AMLBot, in an interview with Decrypt. He pointed out that the whale’s choice to liquidate Bitcoin for opening leveraged long positions in Ethereum shows a “strategic shift toward alternative assets in anticipation of growth.”
The whale initiated the sale by offloading 660 BTC on the decentralized platform Hyperliquid, subsequently using the funds to establish leveraged long positions.
Of the four long positions, three are leveraged at 10x, yielding a notional position size of $209 million.
Currently, Bitcoin is priced around $113,000, with a 1.2% uptick in the last day, but down 10% from its peak on August 14.
Crypto and U.S. stock markets have been pulling back as investors take profits and reduce risk ahead of the upcoming Jackson Hole symposium on Friday. Federal Reserve Chair Jerome Powell is expected to address inflation concerns and offer insights into the September rate decision.
Experts previously interviewed by Decrypt suggest that a rate cut is already factored into the market, and only an unexpected decision from the Federal Open Market Committee may provoke volatility.
Indications of a Mature Market
While significant movements from dormant wallets may raise alarms for investors, Demchuk asserts that the current market is more robust than before.
He recalled an event in July 2025 when a whale from the Satoshi era transferred 80,000 BTC, approximately worth $8 billion, resulting in a 5% drop in Bitcoin’s price.
Conversely, this recent activity indicates that Bitcoin previously thought to be lost is still accessible to its owner, possibly increasing supply and volatility.
“A mature market is better equipped to absorb these occurrences,” Demchuk explained, suggesting that while the whale’s actions might induce some immediate fluctuations, the overall ecosystem can now handle substantial transactions without dramatic price drops.
In the past two months, three additional wallets from the Satoshi era have become active. The most recent transaction occurred on August 7, when the whale shifted $349 million in BTC after ten years of dormancy.
July witnessed two major transfers, including a $469 million transfer after 14 years of inactivity and the previously mentioned $8 billion BTC transfer.
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