ETHZilla plunged roughly 97% after reports surfaced that Peter Thiel’s team is abandoning an ‘Ethereum Treasury’ model, triggering heavy selling. Social posts framed the rout as "paper hands" fleeing while longer-term holders look to buy.
ETHZilla has sold $74.5 million in ether to reduce debt, its second ETH treasury liquidation after a $40 million sale in October. The moves trim the firm's crypto exposure but may add short‑term selling pressure on ETH.