- Crypto whale’s $5 billion loss after Ethereum sell-off triggers panic.
- Ethereum’s decline forces major whale to unload $500 million in ETH.
- Whale’s pivot to Ethereum leads to massive losses, triggering capitulation.
A massive loss in the crypto world has surfaced as a prominent whale, believed to be linked to a Chinese entity, suffers a staggering $5 billion setback. According to Arkham Intelligence, the whale’s downfall follows a series of poorly timed moves, with the latest being a $500 million sell-off of Ethereum (ETH).
Whale’s Initial Bitcoin Success
In 2018, this whale made a bold decision to purchase over 100,000 Bitcoin (BTC) when the cryptocurrency was still in its infancy, securing a substantial position. For nearly seven years, the whale held onto its Bitcoin as part of a long-term investment strategy, watching the value soar to a peak of $11.14 billion. However, in 2025, the whale made a significant pivot.
Also Read: Metaplanet’s Revenue Soars 738% After Betting Big on Bitcoin – Here’s How!
It decided to shift a portion of its holdings into Ethereum, believing the asset held strong growth potential. The whale transferred approximately 39,738 BTC, worth around $4.49 billion at the time, into Ethereum, acquiring a massive 886,371 ETH, valued at roughly $4 billion. The whale intended to ride out the volatility and profit from Ethereum’s potential rise.
However, the market had other plans. Ethereum’s price, which was trading above $4,700 per coin in 2025, failed to break the anticipated $5,000 mark. Instead, the cryptocurrency faced broader market volatility, causing prices to spiral downward. As of now, Ethereum is trading at $1,966.67, marking a 27.19% drop over the past year, leading to the whale’s painful decision to take action.
Ethereum’s Decline Forces the Whale to Act
In response to these mounting losses, the whale has decided to minimize its exposure. The crypto giant has transferred a massive 260,000 ETH, worth over $500 million, to Binance across three separate transactions. This substantial sell-off signals the whale’s capitulation, as it looks to reduce its risk and mitigate further damage from the declining Ethereum market.
This move is expected to have a significant impact on the market. The sell-off could push Ethereum prices lower and send shockwaves through the broader crypto community. As more capital flows away from Ethereum and into more stable assets like Bitcoin, the decision by the whale may be a turning point in market sentiment, especially for retail investors.
Also Read: XRP Ledger Sees Strong Growth in Transactions Despite Price Fluctuations
