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Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.
What happened: A single whale dumped 24,000 BTC (approximately $2.7 billion), wiping out $310m in longs. The whale, which has been dormant for around 5 years, sold BTC for ETH via Hyperliquid (HL) after transferring funds into HyperUnit (a protocol used to bridge external assets to HL). As a result, BTC spot volume on HL did more volume than Coinbase and Bybit combined.
Market reaction: It’s been quite a rollercoaster price action-wise. The sell-off caused Bitcoin to drop from $114,790 to $110,680 within 15 minutes, representing a 3.58% decline. Meanwhile, ETH, SOL, and HYPE showed relative resilience to BTC’s swings.
How to position: ETH, HYPE (and SOL since it seems to be bottoming against BTC) are likely to keep outperforming BTC. Keep spot exposure to these assets to outperform BTC in the mid-term.
Cryptonary’s Take: ETH has been outperforming BTC for quite some time already. We’ve highlighted the shift in the ETH/BTC market structure a couple of months ago, and have been telling that ETH is likely to outperform BTC. This whale just realised this and rotated from BTC to ETH. This doesn’t invalidate our thesis; it just validates our positioning. We got the BTC to ETH rotation pretty cleanly.
Same story with Hyperliquid. We love the product and remain bullish on HYPE. The amount of fees that are being generated daily by this platform is massive, and there is still room for further growth. We remain positioned in HYPE and remain confident that it will keep outperforming BTC. In fact, the weekly chart looks very strong and is about to break into price discovery against BTC.
Don’t fumble the bags!
HYPE/BTC weekly chart:
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