- According to analyst Willy Woo, early Bitcoin whales who acquired coins for under US$10 are now offloading their holdings, with each BTC sold requiring over US$110,000 in new capital to be absorbed by the market.
- A major whale recently liquidated 24,000 BTC (US$2.7 billion) to acquire 416,598 ETH and staked a large portion of it, causing a temporary dip in both BTC and ETH prices.
- Despite the price pullback, Bitcoin futures open interest has reached a record high, indicating a surge in demand for leveraged exposure that could lead to cascading liquidations if the price drops further.
Crypto analyst Willy Woo says Bitcoin’s earliest whales are distorting market momentum by liquidating coins acquired for under US$10 (AU$15.3) more than a decade ago.
BTC supply is concentrated around OG whales who peaked their holdings in 2011. They bought their BTC at $10 or lower. This differential in cost basis, the supply they hold and their rate of selling has profound impacts on how much new capital that needs to come in to lift price.
Willy Woo, Crypto AnalystHe estimated that every Bitcoin sold by these addresses requires more than US$110,000 (AU$167,200) in new demand to offset.
Related: Crypto Carnage Crosses Continents: Billions Flee US ETFs as Australian Bitcoin Funds Tumble
On Sunday evening, Bitcoin’s market capitalisation lost US$45 billion (AU$68.4 billion) after one major holder rotated assets into Ether. BTC dropped from US$114,666 (AU$174,300) to US$112,174 (AU$170,500) within 45 minutes before partially recovering. ETH also fell 4 %, slipping from US$4,937 (AU$7,500) to US$4,738 (AU$7,200).
Blockchain.com data shows the whale moved 24,000 BTC (US$2.7 billion / AU$4.1 billion) to Hyperliquid across six transfers since August 16. Of that total, 18,142 BTC worth US$2 billion (AU$3.04 billion) has already been liquidated, converted into 416,598 ETH. Analyst MLM said that 275,500 ETH US$1.3 billion (AU$1.98 billion) from this swap has been staked.
The whale also built leveraged exposure of 551,861 ETH on Hyperliquid, a position valued at over US$2.6 billion (AU$3.95 billion). That trade produced an estimated US$185 million (AU$281 million) profit on the ETH/BTC pair.
Bitcoin dropped to US$109,400 (A$166,288) on Monday, its lowest in more than six weeks.
Futures Activity Hits Record Levels
Despite the price pullback, Bitcoin futures open interest reached a record 762,700 BTC on Monday, according to CoinGlass. That marks a 13% increase in two weeks, pushing the notional value of outstanding contracts to US$85B (AU$129.2 billion).
The surge indicates higher demand for leveraged exposure, though not necessarily bullish sentiment. Because futures match buyers and sellers equally, heavy long positioning at current levels risks cascading liquidations if Bitcoin dips below US$110,000 (AU$169,530)
Related: Bitwise Unveils 10-Year Bitcoin Outlook: High Returns, High Volatility Ahead
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