Bitcoin failed to capitalize on the growth momentum on Friday after Fed Chairman Jerome Powell's weak speech at Jackson Hole. This growth momentum reversed over the weekend, with the price dropping to $112,000.

While the upward trend of BTC is weakening, Ethereum reached a new peak over the weekend, and it is reported that large 'whales' are the cause of ETH's price increase.

Currently, analysts note that classic Bitcoin investors are selling BTC and buying ETH, leading to a capital shift towards Ethereum and creating volatility in the market. WhaleWire's CEO, Jacob King, stated that Bitcoin's price has dropped sharply due to the BTC selling activities of whales.

According to Jacob King, Bitcoin's price drop today is due to a single whale selling over 24,000 BTC to buy Ethereum.

The analyst noted in his article that he sold over 24,000 BTC, including BTC that he had not moved in over five years, and sent more than 12,000 BTC to the Hyperunite platform today.

The analyst stated that this is part of a larger sell-off, with 18,000 BTC ($2 billion) sold, most of which was converted into Ethereum. According to the analyst, $2 billion was bought and $1.3 billion was traded.

According to an article from Lookonchain, a classic Bitcoin whale, who purchased 100,784 BTC (worth $642 million at the time, now $11.4 billion) seven years ago, is quickly converting his BTC into Ethereum.

Thus, over the past five days, this large 'whale' has sent 22,769 BTC ($2.59 billion) to Hyperliquid for sale. With this amount, he purchased 472,920 ETH ($2.22 billion) from the market and opened a long position with 135,265 ETH ($577 million).

Cannot Blame Bitcoin's Decline on a Whale

However, when speaking to The Block, the Chief Information Officer of Kronos Research, Vincent Liu, stated that it is difficult to identify a single entity causing Bitcoin's price drop.

"The rise in Bitcoin after Powell's speech was due to a lack of liquidity, not due to long-standing beliefs."

As leverage decreases, the rapid increase fades, and BTC falls below a critical level.

Furthermore, this decline is likely due to the influence of multiple whales or an exchange holding a large stake, rather than a single individual. Large-scale transactions, like the recent drop, often require institutional investors or coordinated action.

Liu also emphasized the growing interest in Ethereum: "With the upcoming approval of staking for the Ethereum innovation fund, we expect ETH's performance to continue improving due to increased staking activity and potential altcoin season. Ethereum is expected to be the center of attention."

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