Bitcoin whale causes flash crash of BTC after moving funds to Ethereum.
The cryptocurrency market was once again the protagonist of an intense day after a momentary flash crash of Bitcoin that wiped out more than 357 million dollars in long positions. The event had a single culprit: a whale that decided to sell 24,000 BTC, migrating a large part of its capital to Ethereum.
The operation, which included movements of inactive tokens for more than five years, triggered immediate selling pressure. While Bitcoin lost key supports, Ethereum received over 2 billion dollars in purchases, and 1.3 billion has already been allocated to staking.
So far, more than 18,000 BTC have been liquidated, valued at around 2 billion dollars, while the remaining 6,000 BTC, equivalent to 670 million dollars, are still waiting to be sold.
The size of the operation broke key technical supports for Bitcoin, driving its price down to a minimum of 111,200 dollars, according to BeInCrypto data. However, it has recovered slightly and is now trading at 113,514 dollars.
The whale's movement also triggered a cascade of liquidations in the futures market. According to Coinglass data, over 389 million dollars have been liquidated in the last 4 hours.
Of this total, 357 million dollars correspond to long positions (207 million dollars correspond to Bitcoin). This selling pressure highlighted how a single actor can temporarily disrupt market stability.
The most relevant aspect is that a large part of the capital did not leave the crypto ecosystem: the funds were directed towards Ethereum, boosting its liquidity and reinforcing the narrative of capital rotation towards the second-largest cryptocurrency in the market.
Reports indicate that the whale has converted around 2 billion dollars into ETH, of which 1.3 billion were locked in staking contracts, strengthening the security and liquidity of the network.
This movement, in addition to increasing bullish pressure on Ethereum, reinforces its role as a solid alternative in times of uncertainty in Bitcoin.
Analysts disagree on the implications. Some interpret the maneuver as a strategic shift towards Ethereum, seeking to leverage its fundamentals and staking performance. Others, however, warn of the risk of further declines in Bitcoin if the remainder of the sale is executed under low volume conditions.
For now, Ethereum shows a moderate uptick in demand, registering a new ATH at 4,946 dollars, while Bitcoin attempts to stabilize after the momentary collapse. The outcome will largely depend on whether this whale finishes liquidating its position and the market's ability to absorb such volume.
The flash crash caused by the sale of 24,000 BTC is a reminder of the high volatility of the crypto market and the power that a single actor can exert over its direction.
