A notable Bitcoin whale, identified through on-chain activity, has executed a significant swap of over 400 BTC into Ethereum (ETH) via Hyperliquid, a decentralized exchange. The whale, which previously withdrew 14,837 BTC valued at $94.9 million from an unknown source seven years ago, has now deposited 660 BTC into Hyperliquid, with the majority of the BTC sold and converted into ETH. This move reflects a strategic shift in the whale’s portfolio, as it liquidated BTC holdings and consolidated ETH assets to the tune of 11,744 ETH, valued at approximately $50.6 million. The activity has been attributed to the growing momentum in Ethereum markets, with the whale further opening leveraged long positions in ETH worth $295 million across four distinct wallets, using 3x and 10x leverage.

The whale’s actions are part of a broader trend in whale behavior, with long-term Bitcoin holders increasingly rotating into Ethereum, particularly as leveraged derivatives markets offer higher upside potential. Analysts and market observers have noted that Ethereum’s recent price volatility and sharp corrections have not deterred such large-scale portfolio repositioning. Despite a 200 basis point drop in BTC prices on Hyperliquid following the whale’s activity, the overall impact on the broader market remained limited. The whale’s transactions highlight the increasing interplay between Bitcoin and Ethereum in the context of decentralized finance (DeFi) platforms, with Hyperliquid emerging as a key venue for such large-volume swaps.

Ethereum’s recent performance has been marked by significant price swings, including a recent dip to $4,063 following heavy selling by major ETF providers such as BlackRock, Fidelity, and Grayscale, who collectively offloaded over $422 million worth of ETH within 24 hours. This has triggered a wave of forced liquidations and investor uncertainty, with data from SoSoValue indicating $678 million in cumulative ETF outflows over three days. Fidelity led the sell-off with $156 million in redemptions, followed by Grayscale with $122 million, further exacerbating downward pressure on Ethereum’s price. The market has seen partial recovery, with ETH trading near $4,223, but the broader trend suggests continued selling pressure and a potential shift in investor sentiment.

Bitcoin advocate Samson Mow has weighed in on Ethereum’s current trajectory, suggesting that the recent rally may set the stage for a reversal. Mow, CEO of Bitcoin adoption firm Jan3, pointed out that many long-term ETH holders, including early insiders from the ICO era, already hold substantial Bitcoin positions. According to Mow, these investors have been rotating BTC into ETH to capitalize on new narratives such as the emergence of Ethereum treasury companies. However, once Ethereum prices reach a sufficient level, he predicts that these investors will sell their ETH holdings, potentially leaving “new generational bagholders,” and reallocate their profits back into Bitcoin. Mow’s comments reflect a broader debate within the crypto community about the long-term value proposition of Ethereum and whether it can sustain its current momentum in the face of renewed Bitcoin dominance.

Hyperliquid, the platform through which the whale executed these transactions, has seen a surge in activity and market share in the decentralized perpetual trading space. The platform controls over 75% of the market and manages nearly $6.2 billion in user assets. Despite its rapid growth, Hyperliquid has maintained a decentralized and community-driven approach, rejecting venture capital funding and prioritizing protocol development over short-term exposure. Founder Jeff Yan emphasized the importance of building a product that delivers real value to users rather than chasing early exits or high valuations. The project’s token, HYPE, is currently valued at around $16 billion, placing it 13th among all crypto assets. Analysts expect Hyperliquid to continue gaining traction as more traders seek efficient and decentralized trading environments.

The whale’s strategic shift from Bitcoin to Ethereum underscores the evolving dynamics in the crypto market, where portfolio diversification and leveraged positioning play an increasingly important role. As institutional and retail investors continue to monitor market conditions and policy developments—such as the Federal Reserve’s upcoming interest rate decisions—the interplay between Bitcoin, Ethereum, and decentralized platforms like Hyperliquid will remain a key area of focus. The whale’s activity not only demonstrates the potential for cross-chain arbitrage and leveraged trading but also highlights the shifting priorities of long-term holders in response to market trends and technological advancements.

Source: [1] Ancient Bitcoin Whale Swaps Over 400 BTC to ETH on Hyperliquid (https://cryptonews.com/news/ancient-bitcoin-whale-swaps-over-400-btc-to-eth-on-hyperliquid/) [2] A certain ancient giant whale sold Bitcoin on Hyperliquid… (https://www.chaincatcher.com/en/article/2198926) [3] Bitcoin, Ethereum Rise After Fed Minutes Shed Light on Rate… (https://finance.yahoo.com/news/bitcoin-ethereum-rise-fed-minutes-200700323.html) [4] Bitcoin, Ethereum Slip as Crypto Markets Pull Back After Hitting… (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html) [5] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, XLM (https://cointelegraph.com/news/price-predictions-8-20-btc-eth-xrp-bnb-sol-doge-ada-link-hype-xlm) [6] Founder Jeff Yan Explains Why Hyperliquid Said ‘No’ to… (https://www.blocmates.com/news-posts/founder-jeff-yan-explains-why-hyperliquid-said-no-to-vcs-and-still-won-big) [7] Top Crypto Gainers 2025: Cold Wallet, Hyperliquid, Solana… (https://coincentral.com/top-crypto-gainers-2025-cold-wallet-hyperliquid-solana-and-ethereum-show-strength/) [8] Hyperliquid (HYPE) Price Prediction: Bulls Defend $40… (https://bravenewcoin.com/insights/hyperliquid-hype-price-prediction-bulls-defend-40-support-as-fibonacci-levels-point-toward-64-70-extension)