Bitcoin Slides on $2.7 Billion Whale Sell-off as ETH Rotation Gains Steam

Bitcoin Loses Ground to Ethereum After Jackson Hole Shock

The momentum generated on bitcoin’s spot price movement stalled sharply over the weekend after a legacy holder reportedly dumped roughly 24,000 BTC (~$2.7 billion) into thin Sunday markets, triggering a flash crash that wiped out about $500 million in leveraged positions within minutes.

According to QCP’s Monday, Aug. 25 market insights, the sell-off erased bitcoin’s modest bounce following the Jackson Hole conference and underscored waning institutional support. Spot BTC ETFs have now logged six straight sessions of outflows totaling around $1.2 billion, while Strategy’s August purchases came in lighter than usual, leaving weekend markets vulnerable to heavy selling.

Ether, by contrast, continued its climb. The ETH/ BTC ratio broke above 0.04 as older wallets rotated holdings into ETH, echoing December levels when bitcoin topped $100,000 and ether retook $4,000. This time, ETH led the move, hitting an all-time high of $4,957 before retracing to $4,600.

Supporting the rotation, firms such as Bitmine and Sharplink expanded ETH treasuries. Bitmine’s latest $45 million purchase pushed its holdings to about $7 billion, providing steady institutional demand that has helped anchor ether’s price.

Bitcoin dominance has slipped from 60% to 57% as traders bet on ETH outperforming, particularly if U.S. regulators approve staking-based ETFs later this year. Still, analysts caution against declaring a structural shift. In July, markets absorbed nearly 80,000 BTC in supply, with institutions stepping in to buy dips, a pattern many expect to repeat.

For now, BTC appears to be conceding momentum to ETH, but the broader outlook for both assets remains tied to the strength of institutional flows.