Bitcoin News Today: Whales Bet Big on Ethereum as Bitcoin’s Weak Hands Exit

Large BitcoinBTC-- holders have resumed buying activity amid recent price volatility, according to a CryptoQuant report, signaling a potential shift in market dynamics. Institutional outflows have reached $1 billion, indicating low investor sentiment. As the price of Bitcoin dipped below $111,000, retail traders sold at a loss, while experienced whale investors moved to acquire more supply. Analysts suggest that such whale activity can strengthen the market foundation and potentially drive upward momentum [2].

On-chain data reveals that new Bitcoin holders have exited their positions with a 3.5% loss, primarily driven by fear of further price declines. However, short-term holders (STHs) who have held for 1-6 months remain profitable, with an aggregate unrealized profit of 4.5%. This trend suggests that while inexperienced investors are being forced out of the market, more committed traders are maintaining their positions and staying in the green [2].

CryptoQuant researchers note that the decline in total STH supply does not signal widespread panic but rather the “capitulation” of short-term speculative traders. The market is seen as “purging” weak hands, favoring long-term commitments. The recent approval of spot Bitcoin ETFs has brought in new capital, driving the asset to multiple all-time highs [2]. However, institutional treasuries are now shifting their attention toward exposure to traditional markets, indicating a possible recalibration in the crypto investment landscape.

Meanwhile, EthereumETH-- has outperformed Bitcoin in recent weeks, with whale investors actively accumulating large amounts of ETH. Blockchain analytics firm Arkham reported that nine major whale addresses purchased a combined $456.8 million in Ether, with some transfers coming from custodian BitGo and Galaxy Digital’s over-the-counter desk. Additionally, eight newly created wallets acquired 35,948 ETH ($164 million) within eight hours, with transactions originating from FalconX and Galaxy DigitalGLXY-- [1]. This trend reinforces the growing institutional-grade interest in Ethereum as an alternative to Bitcoin.

Institutional-grade platforms are playing a key role in facilitating whale accumulation. Notably, an unknown participant recently purchased $2.55 billion in Ether through Hyperliquid and staked the tokens, effectively removing them from the circulating supply. Such large-scale purchases suggest that whales are using Bitcoin profits to rotate into Ethereum during market corrections. Ethereum’s recent 13% drop from $4,900 to around $4,300 has created attractive entry points for institutional buyers [1].

Polymarket data reflects growing bearish sentiment among crypto investors, with a 62% probability that Bitcoin will trade below $100,000 by year-end. This prediction contrasts with the continued institutional buying and Ethereum’s relative outperformance. Analysts remain divided on whether the current correction is a short-term adjustment or a longer-term bearish trend. As on-chain activity shifts and whale behavior evolves, the market continues to monitor key price levels and institutional involvement for signs of stabilization [1].

Source:

[1] Whales Dump Bitcoin, Snatch Up $456M in Ethereum (https://finance.yahoo.com/news/whales-dump-bitcoin-snatch-456m-151949160.html)

[2] Bitcoin Whales Resume Buying as $1 Billion Institutional Outflows Trigger Weak-Hand Purge (https://zycrypto.com/bitcoin-whales-resume-buying-as-1-billion-institutional-outflows-trigger-weak-hand-purge/)