Bitcoin Hodler Sells $60M BTC After 7 Years, Rotates Into $282M Ether Long

A long-time Bitcoin holder has shocked markets by dumping their entire stash of BTC and opening a massive Ether long, raising eyebrows across crypto trading circles.

The trader sold 550 BTC (~$62 million) after holding for seven years, before immediately opening a $282 million leveraged long on Ether (ETH) through three separate accounts on decentralized exchange Hyperliquid, according to pseudonymous on-chain analyst MLM.

“Either he caught some crazy bullish insider news, or he’s just gambling. The execution looked sloppy and rushed,” MLM noted in an X post on Wednesday.

Wallet “0x2ea.” Source: Hypurrscan

Bitcoin Sale Sparks Price Dislocation

While a $60M BTC sale may be modest by institutional standards, Hyperliquid’s thinner liquidity magnified the impact. The sale caused Bitcoin’s price to fall 200 basis points (~2%) on the platform, pushing BTC into a 30 bps discount versus other major exchanges.

At Wednesday’s spot price of $113,370, the 200 bps drop equaled about $2,267 per Bitcoin, signaling that Hyperliquid’s order books still struggle with large block trades.

Market Context

The rotation came just as Bitcoin dipped to a two-week low of $112,000 on Wednesday, ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday — a macro event closely watched for hints on September’s interest rate decision.

“The move reflects rising nerves in the market,” said Ryan Lee, chief analyst at Bitget exchange, pointing to uncertainty around Fed policy.

Source: MLM

Hyperliquid’s Rapid Growth

Despite liquidity concerns, Hyperliquid has emerged as a dominant force in DeFi derivatives:

$319B trading volume in July, a record monthly high

35% of all blockchain revenue captured in July, per VanEck

6th-largest derivatives exchange globally, up from 12th in April (CoinGecko)

$12B in 24-hour open interest across its markets

The platform gained traction after launching spot trading in April 2024, leveraging aggressive listings and a clean UI to attract traders.

Top derivative exchanges by open interest. Source: CoinGecko

Key Takeaway

The Bitcoin-to-Ether rotation is one of the boldest directional bets in months. Whether it signals inside conviction on ETH or just reckless speculation, the trade highlights the fragility of on-chain liquidity — and the high stakes of crypto’s whales.

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