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A Hyperunit whale has been caught on the wrong side of a big Ethereum (ETH) trade. As per the Arkham Intelligence update, the whale, which is presumed to be a Chinese entity, has now suffered over $5 billion in losses. This comes after the hyperunit whale offloaded $500 million worth of Ethereum.
From Bitcoin fortunes to Ethereum losses
Notably, the whale had accumulated Bitcoin (BTC), in 2018 when the asset was relatively cheap. Its total holding was in excess of over 100,000 BTC. The whale did not move the coins for approximately seven years as a long-term holder.
The value of this portfolio soared to $11.14 billion at one time. However, in 2025, the whale decided to rotate some funds into Ethereum, possibly because the coin signaled potential. He moved about 39,738 BTC worth around $4.49 billion at the time and used it to purchase Ethereum.
This whale held a total of 886,371 ETH valued at approximately $4 billion as he looked to hold long-term while the price appreciates.
However, from market indications, this whale appears to have been caught by the wrong timing. Since the rotation into Ethereum, the coin has seen downward price fluctuations. In 2025, Ethereum traded at above $4,700 per coin, with many investors anticipating a surge above the $5,000 level.
This did not happen as broader market volatility concerns triggered a downward spiral, which negatively impacted Ethereum. As of this writing, Ethereum is exchanging hands at $1,966.67, which is a 4.73% decline in the last 24 hours and a 27.19% drop in 365 days.
Ethereum’s trading volume has also taken a hit, and it is down by 4.49% to $24.22 billion within the same time frame. This is predominantly the result of capital rotation to Bitcoin.
Given this scenario, the Hyperunit whale has decided to deleverage their exposure of about $5 billion in paper losses. This accounts for the $500 million worth of Ethereum to reduce risks.
$500 million exchange deposit of Ethereum signals capitulation
The whale’s deposit of about 260,000 ETH to Binance across three transactions marks a major sell-off and capitulation by a long-term holder. The whale’s movement from Bitcoin to Ethereum and now selling Ethereum could influence market sentiment.
The more than $500 million worth of Ethereum pushed into the exchange could further push prices down in the short term and scare retail traders.
More importantly, the whale’s action highlights the risk of leverage in the crypto space. Rotating late or entering the market during a high cycle could have significant consequences if volatility sets in.
Vladislav Sopov
Dan Burgin