Why Crypto Dropped: Five-Year-Old Bitcoin Whales Sold Big
Cryptocurrency markets plunged late Sunday after on-chain data revealed a long-dormant Bitcoin whale executed a massive sell-off that intensified already fragile market sentiment.
The wallet, linked to a large withdrawal from the HTX exchange in 2019 and inactive for five years, dumped roughly 24,000 BTC — about $2.7 billion — over several days.
Rather than cashing out entirely, the whale used the proceeds to aggressively accumulate Ethereum, acquiring more than 400,000 ETH and immediately deploying those coins into leveraged long positions and staking. That reallocation added both selling pressure on BTC and complex, leverage-driven dynamics to the broader market.
The whale’s activity was only part of the story. Markets had rallied earlier in the week after a dovish tone from the U.S. Federal Reserve chair at the Jackson Hole meeting, which briefly lifted sentiment and helped push Ethereum up over 10% and XRP more than 5%. However, analysts and traders grew skeptical by week’s end about the certainty of a September rate cut, noting the Fed comments stopped short of a firm commitment. Market pricing still shows strong odds of easing, with CME FedWatch ≈ 87% and Polymarket ≈ 81%.
By Monday morning the combined crypto market cap had dropped by roughly $80 billion, slipping below $4 trillion, and over $715 million in leveraged positions were liquidated, deepening the downturn. The episode highlights how large, long-dormant holders and macro policy signals can quickly combine to produce outsized market moves.
- BTC sold: ~24,000 BTC (~$2.7 billion)
- ETH accumulated: >400,000 ETH (deployed into leveraged longs and staking)
- Market cap impact: ≈ $80 billion decline; fell below $4 trillion
- Liquidations: >$715 million in leveraged positions
- Market pricing on easing: CME FedWatch ≈ 87%, Polymarket ≈ 81%
This is not investment advice.
