Bitcoiner Willy Woo believes that Bitcoin’s older whales are to blame for the slow price movement this cycle. He points out that each Bitcoin sold now requires more than $110,000 in new capital.
“BTC supply is concentrated around OG whales who peaked their holdings in 2011,” Woo said In an X-post on Sunday. “They bought their BTC at $10 or lower.”
“This differential in cost basis, the supply they hold and their rate of selling has profound impacts on how much new capital that needs to come in to lift price,” Bitcoiner OG said.
Bitcoins flash crash from $112K due to whale blame
The crypto community attributed the Bitcoin market’s drop of $45 billion on Sunday to a Bitcoin whale who switched from BTC to ETH.
Over the course of the last seven days, the whale is thought to have converted more than $2 billion of Bitcoins into Ether. The move triggered an avalanche of buy orders in the whole market.
Bitcoin (BTCCoinGecko () saw a drop of nearly 2,2%, dropping from $114.666 to $112.546 within nine minutes. Then, it dropped further, reaching $112.174 by 8:16pm UTC. data shows.
ETH is also fell In the same time period, the value of Bitcoin grew by an impressive 4% to $4 738. However, both cryptocurrencies have recovered approximately half the losses from the crash.
Blockchain.com reports that many on X are pointing to a crypto-whale who began transferring Bitcoins to Hyperliquid, a decentralized perpetual crypto platform on August 16, and sent 24,000 BTC (2.7 billion dollars) in six transfers across the past nine days. data shows.
The total amount of 18142 BTC, worth $2 billion, has been already sold. Nearly all have been converted into 416 598 ETH. according According to MLM the crypto analyst, the whale could be responsible for another set wallet addresses that are moving Bitcoin into Hyperliquid in order to buy additional ETH.
The whale staked 275.500 ETH totaling $1.3billion, which suggests the pivot from Bitcoin to Ethereum may be a part of a strategic long-term approach.
Whale’s lucrative trading strategy was a factor in the crash
Whales also weigh 135,263 ETH on Hyperliquid for a total exposure of 551,861 ETH — worth over $2.6 billion — strategically positioning the trades to frontrun other fast-moving market participants and netting MLM reported a $185-million profit from the ETH/BTC trading.
Trading traders reacted favorably to whales’ earlier comments. spot purchases.
Related: Custodia Bank CEO warns of TradFi firms facing first crypto winter
As the whale began to close the longs the market realized that the whale was a whale. trading strategy — prompting traders to reverse their positions with a cascade of sell orders, MLM noted Telegram –
“He effectively frontran the people who were trying to frontrun him.”
Bitcoins could be sold at a higher rate
Sani On X was the original founder of TimechainIndex.com. noted The Bitcoin whale is still holding 152,874 Bitcoin in several different wallets.
Original source of funds crypto exchange HTX Sani said that (formerly Huobi), about six years earlier, had been inactive up until August 16.
The whale that converted BTC to ETH was another one who did it last week
Another Bitcoin whale has sold 670 Bitcoins worth $76 Million. open a long position in ETH last Thursday — reflecting the increasing trend of crypto whales selling BTC for ETH.
ETH has risen 220% from its low of $1,471 in April 2009 to catch up with Bitcoin and Solana.SOLThe bull market cycle began with the emergence of a new bull.
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Source: cointelegraph.com
