Whale Dumps $2B in Bitcoin, Sparks Flash Crash but Rotates Into Ethereum

• Whale triggers Bitcoin crash but rotates billions into Ethereum strength.
• Bitcoin struggles at key support as Ethereum gains market momentum.
• Altcoin season looms as Bitcoin dominance weakens near fifty percent.

A massive Bitcoin sell-off unsettled the crypto market after a whale offloaded more than 24,000 BTC worth $2 billion. As a result, the sharp move induced a flash crash that eliminated long positions worth $310 million in a few hours.

Analyst Ali Martinez claims that the whale transferred coins that remained stationary for more than half a decade. Indeed, over 12,000 BTC are sold on the Hyperunite platform in a single day, which increases pressure on the market. Overall, 18,000 BTC, or $2 billion, have been sold so far, with another 6,000 BTC, or $670 million, remaining on course.

Also Read: Japan Eyes Crypto Shift as LDP Pushes Tax Cuts and Tough Insider Trading Rules

Whale Rotation Strengthens Ethereum

Instead of leaving the market, the whale rotated most of the proceeds into Ethereum. As a result, $2 billion in ETH was purchased, and over $1.3 billion was staked. This strategic decision allowed Ethereum to remain bullish, as it stood at a price of $4,723.13 and had increased by 1.36 percent in the past week.

At the same time, the overall crypto market cap fell to $3.93 trillion due to Bitcoin’s drop. However, Ethereum’s strength prevented the overall outlook from weakening even further.

Bitcoin Support Levels Under Watch

Martinez pointed out that Bitcoin must hold above $112,000 to avoid further downside. Moreover, he noted that this level has provided multiple rebounds throughout August. Should the support be maintained, Bitcoin could be on its way back to $118,000 and then revisit $120,000.

Nevertheless, a verified breakdown at the level of $112,000 would probably lead to a more significant decline.

Altcoins Gain as Bitcoin Dominance Weakens

Bitcoin dominance dropped from above 60 percent to nearly 50 percent. Consequently, altcoins such as Ethereum and Solana are beginning to capture more capital. Ethereum is edging near its all-time high, while Solana surged past resistance and is now targeting the $280 to $300 range.

Additionally, analysts suggest this rotation may spark a second phase of altcoin season. If Bitcoin consolidates at current levels, a broader rally across leading tokens could take shape in the days ahead.

The whale’s $2 billion Bitcoin sell-off rattled the market but marked a strategic shift into Ethereum and altcoins. Hence, Bitcoin’s ability to defend its support will remain critical, while altcoins appear positioned to benefit from the ongoing capital rotation.

Also Read: Another Mysterious 16,594,920 XRP to Coinbase Move – Here’s What’s Happening

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