Bitcoin’s price has declined to $111,935 after a whale’s constant sell-offs sent shockwaves through the market.
As blockchain monitoring reports highlight, a situation unfolded where a long-term holder of Bitcoin, often called a “Bitcoin OG,” transferred 24K BTC at around $2.59 billion over the past five days.
The whale reallocated the funds into Ethereum, buying 472,920 ETH worth $2.22 billion at spot markets and also opened a long position for 135,265 ETH worth $577 million.
This aggressive move led to Ethereum hitting its record ATH of $4,953.73 on August 24, and such an interesting scenario illustrates how whales cause decisive price shifts that shape the overall market.
Ethereum Hits All-Time High Fueled by BTC Sell-Offs
The whale’s choice to sell Bitcoin and build Ethereum is a big factor in the new momentum for Ethereum’s price.
Ethereum jumped to a record all-time high of $4,953.73, as demand from the massive inflows increased.
Analysts see the current crypto market dynamic really changing at this moment in time.
We see a lot of big buyers now diversifying out of Bitcoin into altcoins and, yes, while ETH is benefitting from the capital rotation, Bitcoin is facing significant sell pressure, which adds to its current weakness in miner capitulation, ETF outflows, and broken technicals.
This shift also reflects an evolving narrative that suggests Ethereum could rival Bitcoin in dominance as investors start to invest and speculate in options on the broader altcoin market.
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Fears of Bitcoin Network Centralization Add Pressure
As Bitcoin prices have sunk, investors are becoming more rattled over security concerns. Like in the Foundry (33.5%) and AntPool (18.2%), which were the only two miners comprising more than 52% of Bitcoin’s hashrate. Causing panic about a 51% attack.
From a technical perspective, the degree of concentration opens the door for block reorganization, censorship, or double-spending.
Still, experts point out that conceptually, this level of attack could never happen in practice, as many thousands of independent miners provide the hashpower as a whole and can easily switch pools.
Also, an attack against the network, although it could yield tangible results to the attackers, would cripple Bitcoin’s price and, more importantly, miners’ revenue streams, ultimately making the stolen BTC lose value to the attackers.
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Market Drivers: Miners, ETFs, and Technical Weakness
Bitcoin’s price fall is not just a result of whale activities; it is constituted of different bearish events.
Miners sold 5,066 BTC in the last 30 days, which was the largest sale since December 2024.
Miners, realizing no margin gains for their block reward after the halving event, were forced to liquidate BTC on the market and hold only cash, according to Glassnode.
Meanwhile, SosoValue data revealed that Bitcoin U.S. spot ETFs recorded $1.51 billion in weekly outflow.
The most significant weekly decline since February 2025. Institutional investors are selling their Bitcoin holdings for profit advantage after a strong year-to-date rally.
Technically, BTC broke below the $114,500 support level, creating $81 million in liquidations, with bearish RSI and MACD technical indicators triggering further downside risks.
Spot trading volumes increased 45% to $75.5 billion, with panic selling, as investors liquidated all positions amidst fears of further declines.
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Outlook: Correction or Reversal?
The current dip in Bitcoin once again feels like part of a larger bull market correction rather than an outright reversal of its bullish trend.
While it has lost 10.05% from its all-time high of $124,457 and is lagging a little in the overall crypto market, even though BTC is still showing a positive 90-day return of 2.8%.
However, the current support area of interest is $110,000. If Bitcoin can hold $110,000 or higher, prices can stabilize to provide long-term accumulators. If it comes down again, risks hover around the 200-day EMA near $100,787.
Interestingly, Ethereum’s surge highlights the latest market dynamics; it appears capital flows are becoming increasingly diversified away from Bitcoin.
Now the question is in front of all crypto investors: will Bitcoin reclaim its former dominance, or is Ethereum and its acceleration the first of many cues of a changing momentum to this evolving crypto landscape?
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