A long-term Bitcoin investor sold all holdings this week, shifting to nearly $300 million in Ethereum.
The investor sold 550 Bitcoins (BTC) for about $62 million, after seven years.
After selling through the decentralized exchange Hyperliquid, they opened long positions in Ethereum (ETH) worth $282 million across three accounts, according to anonymous on-chain analyst MLM.
On Wednesday, an on-chain analyst stated on platform X: "Either he received some insider information or is just gambling, but the execution appears rushed and unregulated."
These large movements are often tracked by traders to gauge short-term market trends.
This move came after Bitcoin fell to a two-week low near $112,000, reflecting market jitters ahead of U.S. Federal Reserve Chairman Powell's upcoming speech, which Bitget's chief analyst Ryan Lee remarked may involve September's interest rate policy.
Related: David Bailey's KindlyMD launched a $679 million Bitcoin reserve.
The price of Bitcoin on Hyperliquid dropped by 200 basis points due to a $60 million sell-off.
Although this $60 million sale is not particularly prominent compared to other large trades, it was enough to trigger price fluctuations on Hyperliquid.
The sell-off caused the price of Bitcoin on the Hyperliquid exchange to drop by 200 basis points (bps), currently 30 basis points lower than other exchanges, MLM added on X platform on Wednesday.
This volatility indicates that Hyperliquid's order book may struggle to absorb such massive trades without significant price impact.
Cointelegraph has sought comment from Hyperliquid regarding its liquidity status.
Related: Ethereum traders' astonishing gains from $125,000 to $43 million were nearly wiped out.
Hyperliquid's trading volume reached a new monthly high in July, hitting $319 billion, bringing the cumulative record of the decentralized finance perpetual futures platform to $487 billion, Cointelegraph reported on August 7.
Hyperliquid accounted for 35% of blockchain revenue in July, attracting significant value from Solana, Ethereum, and BNB Chain, as noted by VanEck researchers in their monthly report.
Hyperliquid has evolved into the world's sixth-largest derivatives exchange, with over $12 billion in open contracts within 24 hours, rising from 12th place in early April, according to CoinGecko.
Hyperliquid quickly gained popularity after launching spot trading in April 2024 with an aggressive listing strategy and user-friendly interface.
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