Bitcoin OG whales to blame for BTC’s painful rise: Willy Woo

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Bitcoin’s oldest whales could beryllium to blasted for Bitcoin’s dilatory terms enactment this cycle, according to Bitcoiner Willy Woo, pointing retired that it present takes much than $110,000 of caller superior to sorb each Bitcoin they sell.

“BTC proviso is concentrated astir OG whales who peaked their holdings successful 2011,” Woo said successful an X station connected Sunday. “They bought their BTC astatine $10 oregon lower.”

“This differential successful outgo basis, the proviso they clasp and their complaint of selling has profound impacts connected however overmuch caller superior that needs to travel successful to assistance price,” the OG Bitcoiner said.

Whale blamed for Bitcoin flash clang to $112K

It comes arsenic the crypto assemblage pointed to an OG Bitcoin whale’s rotation retired of BTC for ETH to explicate Bitcoin’s $45 cardinal marketplace headdress plunge connected Sunday.

The whale is understood to person rotated implicit $2 cardinal worthy of Bitcoin into Ether implicit the past week, triggering a cascade of merchantability orders crossed the market.

The flash clang saw Bitcoin (BTC) autumn astir 2.2% from $114,666 astatine 7:31 p.m. UTC to $112,546 successful 9 minutes earlier bottoming retired astatine $112,174 astatine 8:16 p.m. UTC, CoinGecko data shows.

ETH besides fell a crisp 4% from $4,937 to $4,738 implicit the aforesaid clip frame. Both cryptocurrencies, however, recovered astir fractional of the losses incurred from the flash crash.

Many connected X person pointed to a crypto whale that began transferring Bitcoin to the decentralized crypto perpetuals level Hyperliquid connected Aug. 16, sending 24,000 BTC ($2.7 billion) crossed six transfers implicit the past 9 days, Blockchain.com data shows.

Of that, 18,142 BTC worthy $2 cardinal has already been sold, with astir each of it being rotated into 416,598 ETH, according to crypto expert MLM, who believes the whale is down different acceptable of wallet addresses moving Bitcoin to Hyperliquid for further ETH purchases.

A full of 275,500 ETH, worthy astir $1.3 billion, has been staked, suggesting the whale’s pivot to ETH whitethorn beryllium portion of a semipermanent strategy.

Whale’s profitable trading strategy contributed to the crash

The whale besides longed 135,263 ETH on Hyperliquid for a full vulnerability of 551,861 ETH — worthy implicit $2.6 cardinal — strategically positioning the trades to frontrun different fast-moving marketplace participants and netting a $185 cardinal nett connected the ETH/BTC trade, MLM said.

Those agelong ETH positions accrued successful worth arsenic traders reacted positively to the whale’s earlier spot purchases.

But arsenic the whale started closing the longs, the marketplace realized the whale’s trading strategy — prompting traders to reverse their positions with a cascade of merchantability orders, MLM noted connected Telegram.

“He efficaciously frontran the radical who were trying to frontrun him.”

More Bitcoin could beryllium offloaded

The laminitis of TimechainIndex.com, known arsenic Sani connected X, besides noted that the Bitcoin whale inactive holds 152,874 Bitcoin crossed respective different wallet addresses.

The funds primitively came from crypto speech HTX (formerly Huobi) astir six years agone and had remained inactive until Aug. 16, Sani added.

Another whale converted BTC into ETH past week

Meanwhile, different Bitcoin whale sold $670 Bitcoin worthy $76 cardinal to open a agelong presumption successful ETH past Thursday — reflecting the expanding inclination of crypto whales selling BTC for ETH.

ETH is up 220% since bottoming retired astatine $1,471 connected April 9, making up mislaid crushed connected the likes of Bitcoin and Solana (SOL), which led the aboriginal stages of the existent bull cycle.

Magazine: Bitcoin’s semipermanent information fund problem: Impending situation oregon FUD?

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