Bitcoin whale is dumping again as BTC flatlines at $116K
A once-silent Bitcoin wallet that shocked the market by swapping nearly $4 billion worth of BTC for Ether in late August is back in action. On-chain data shows the address has resumed selling, with fresh deposits spotted at a major perpetuals exchange. This move has stirred concern among traders as Bitcoin continues to struggle near the critical $116,000 resistance level, where sentiment remains fragile.
The renewed selling comes at a time when the broader crypto market is already sensitive to macroeconomic news and ongoing security upgrades across key platforms. With Bitcoin’s price momentum under pressure, many fear this activity could add more volatility and trigger a shift in capital flows. Market participants are now closely monitoring whether this large player’s moves will set the tone for the next leg of trading.
Whale resumes selling after $4B BTC→ETH rotation
The wallet, inactive for years, reportedly deposited ~1,176 BTC (≈$136M) to a derivatives platform and began unloading.
Two weeks earlier, the same holder moved ~36,000 BTC into ETH, a rotation that lit up crypto Twitter/X and revived the on-again, off-again debate about “smart money” flows.
Traders worry that sustained distribution from a single, well-capitalized entity can push spot and perp liquidity lower, making breakouts harder to sustain.
Why this matters for market structure
Large sales from long-term holders often arrive into thin weekend or early-week liquidity, steepening order-book impact. The risk isn’t just immediate downside; it’s also trend fatigue buyers hesitate to chase if they expect another tranche to hit the market.
Ratio still subdued
The ETH/BTC ratio remains under 0.05, far below its 2017 peak near 0.14.
If the whale flipped back to BTC at current levels, back-of-the-envelope math suggests a paper loss in BTC terms, highlighting the timing risk of large inter-asset rotations.
For directional traders, the ratio’s drift matters: low ETH/BTC often accompanies Bitcoin-led moves, while an improving ratio can foreshadow altcatch-ups.
Bitcoin stalls near key resistance
Bitcoin tapped $116,000 its highest in roughly three weeks—then flatlined around $115.5K within a narrow 24-hour range. The level has acted like a lid, and supply from large holders hasn’t helped. BTC remains ~7% below its mid-August spike above $124,000.
Old coins on the move
Dormant addresses holding hundreds of BTC have stirred: one sent a portion to an exchange, another reshuffled funds into a fresh wallet. Individually, these moves don’t dictate price; collectively, they tilt the supply narrative toward distribution rather than hoarding.
Legal fight over Fed governance, rate-cut odds
In the background, a legal clash over a Federal Reserve governor’s removal is rekindling debate about central-bank independence—just days before a widely expected rate cut. Swaps and futures lean toward a 25 bp move. For crypto, softer policy can ease dollar strength, but legal overhangs and macro uncertainty may keep risk appetite two-sided in the near term.
Bank pilots quantum-safe records
Separately, a major Paraguayan bank is rolling out post-quantum signatures and anchoring document proofs on a quantum-resistant L1, a sign that “harvest-now, decrypt-later” concerns are moving from whitepapers to production. For institutions eyeing tokenization or blockchain audit trails, crypto-agility is becoming a procurement requirement not a buzzword.
What to watch next
Order-book absorption near $116K:
Can spot demand outpace whale supply?ETH/BTC:
sSstained strength above 0.05 could flag a rotation back into majors beyond BTC.Macro prints & Fed tone:
Avish surprise could lift risk, but legal noise may cap enthusiasm.
Bottom lines
Bitcoin’s short-term outlook depends heavily on whale activity as the asset tests the $116,000 level. Large-scale selling has added pressure on the market, raising doubts about whether bulls have enough momentum to absorb the supply and push prices higher. Traders remain cautious, watching order books and inflows closely for signs of strength.
Until Bitcoin clears this ceiling with strong, sustained volume, price action is likely to stay unstable. Choppy ranges and sharp reversals triggered by news headlines are expected to dominate in the meantime, leaving both bulls and bears on edge as the next decisive move develops.
FAQs
Q1 : Why do whale sales move price so quickly?
A : Large market orders thin the order book, triggering stops and momentum trades. This effect becomes sharper during Bitcoin whale dumping, especially as BTC tests $116K.
Q2 : Does an ETH/BTC rebound mean altseason?
A : Not automatically. While a rising ratio often hints at broader risk-on sentiment, liquidity, funding conditions, and the macro backdrop must also align.
Q3 : Is $116K a hard ceiling for BTC?
A : It’s resistance, not destiny. Sustained acceptance above the level, backed by spot volume and stable funding, would signal a constructive breakout.
Q4 : How do Fed decisions affect crypto?
A : Looser monetary policy can weaken the dollar and support risk assets like crypto, but regulatory and political headwinds may offset the bullish effect.
Q5 : What is “harvest-now, decrypt-later”?
A : It refers to adversaries storing encrypted data today with the intent to decrypt it once quantum computing matures, prompting a shift toward quantum-safe security tools.