$520M Bitcoin Dumped for $1B in Ethereum—Is the Market Flipping

The cryptocurrency market is digesting one of the largest trades in recent months, after a single market participant sold $520 million worth of Bitcoin and bought nearly $1 billion worth of Ethereum on the Hyperliquid platform.

The move, spread across two wallets and carried out over two days, has sparked debate over whether this is simply opportunistic arbitrage or a sign of changing sentiment in the industry.

Breaking down the trade

On-chain data, shared by analyst MLM on X, shows the wallets together sold 4,622 BTC and acquired more than 228,000 ETH through spot and perpetual contracts. One wallet sold about 1,480 BTC for $180 million and picked up 38,362 ETH.

The second was even larger, offloading 3,142 BTC valued at $350 million while purchasing 55,090 ETH and opening a $582 million long position on Ethereum.

The trades exploited a pricing quirk: Bitcoin was trading at a 50–100 basis point discount while Ethereum carried a slight premium. This created an opening for rotation, allowing the trader to exit BTC positions and accumulate ETH under favorable conditions.

According to blockchain data, the wallets still control roughly 76,600 BTC, suggesting that this may be just one phase of a broader strategy. Plans to rotate an additional 3,520 BTC into ETH and sell 15,700 BTC over-the-counter have also been reported.

Why Ethereum, and why now?

The decision to favor Ethereum aligns with several broader developments. First of all, the asset’s price action has been impressive, putting most holders back into profit.

Just last week, it climbed into the $4,700 range, nearing its all-time high of $4,878, according to CoinGecko. As of now, it trades at $4,280, reflecting a 16% gain over the past month.

Notably, this comes at a time when many are anticipating the altseason. Additionally, since its Merge upgrade in 2022, Ethereum has attracted attention for reduced energy use and growing scalability.

Its daily transaction volume surpassed Bitcoin’s 550,000 in mid-2024, highlighting its expanding role as a platform for smart contracts and decentralized applications.

Regulatory signals may also play a role. Under President Trump’s 2025 digital asset policies, U.S. regulators have encouraged diversification beyond Bitcoin, including ETH as a recognized digital commodity. That framework could make Ethereum more attractive for institutional and long-term holders.

Other Related Read/Listens

• MegaETH Explained: Ethereum's Last Chance to Beat Solana? With BreadGuy
• Ethereum Core Developer Loses Funds in Malicious AI Extension Attack
• Ethereum “Misuse” Lands Blockchain Dev in Turkish Detention, Here’s What We Know