Bitcoin News Today: Bitcoin Whales Shift Trophies to Ethereum as BTC Loses Grasp

Bitcoin OG whales are increasingly being blamed for the recent fluctuations in Bitcoin’s price, with some of the oldest holders playing a key role in the market's dynamics. According to crypto analyst Willy Woo, Bitcoin’s slow price action is partly due to the concentration of supply among these OG whales, who have held their Bitcoin since as far back as 2011. “They bought their BTC at $10 or lower,” he noted in a recent post, highlighting how their cost basis and selling patterns impact the amount of fresh capital required to push prices higher [3].

The crypto market is now observing a notable shift as OG whales rotate their Bitcoin holdings into Ethereum (ETH). On-chain data from Lookonchain revealed that a long-dormant Bitcoin whale transferred over 6,000 BTC, valued at approximately $689.5 million, to purchase ETH. This whale has already acquired 278,490 ETH at an average price of $4,585, with a total long position of 135,265 ETH, worth around $581 million. Another similar whale moved 24,000 BTC, worth $2.7 billion, to Hyperliquid over the course of nine days, of which 18,142 BTC—worth $2 billion—has been sold and converted into 416,598 ETH [1]. These moves are indicative of a broader trend where Bitcoin is losing dominance to Ethereum in the capital allocation landscape.

Ethereum has been the standout performer in the current market cycle, with ETH recently setting new all-time highs and showing strong momentum. Data from Cointelegraph Markets Pro and TradingView showed ETH trading above $4,600 as it approached a key weekly close level. Analysts believe this could signal the beginning of the next leg of the ETH rally, with price targets as high as $5,200–$5,500 in the coming weeks [1]. Additionally, Ethereum has successfully filled a CME gap, a technical indicator often associated with bullish continuation [2].

The market impact of these whale movements has not gone unnoticed. For example, one major Bitcoin whale’s trades triggered a sharp flash crash in BTC, sending the price down nearly 2.2% within a nine-minute window in late August. The whale’s ETH longs increased in value as traders reacted to the initial spot purchases, but the market turned bearish when the whale began closing those positions. This resulted in a cascade of sell orders and a subsequent $4.6 billion plunge in Bitcoin’s market cap. The whale is estimated to have netted a $185 million profit from these ETH/BTC trades [3].

Meanwhile, broader market indicators are also signaling a shift in investor sentiment. Bitcoin’s dominance index has dipped below the 50-week EMA for the first time in over two years, a sign that capital is increasingly flowing into altcoins. Institutional investors are also reallocating toward Ethereum, with some funds reporting larger allocations to Ethereum ETFs than to Bitcoin-based products. Additionally, the Ethereum ETF market is growing, with BitMine consolidating as the largest ETH treasury globally, holding $6.6 billion in Ethereum [6].

The rotation of capital from Bitcoin to Ethereum is expected to continue, especially with Ethereum’s recent outperformance and the relative strength of altcoins compared to Bitcoin and other major cryptos like Solana. Ethereum has gained over 220% since hitting a low of $1,471 in early April, significantly outpacing Bitcoin’s gains during the same period. This trend is likely to persist as long as Ethereum remains in a strong bullish cycle and Bitcoin faces pressure from large whale selling and seasonal volatility [2].

Source: [1] Bitcoin whales swap BTC for Ether as trader sees ETH at ... (https://cointelegraph.com/news/bitcoin-whales-swap-btc-for-ether-trader-sees-eth-hitting-5-5k-next) [2] Why Are Dormant Bitcoin Whales Rotating Into Ethereum ... (https://finance.yahoo.com/news/why-dormant-bitcoin-whales-rotating-233132720.html) [3] Bitcoin OG whales to blame for BTC's painful rise: Willy Woo (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades) [4] Bitcoin Whales Quietly Stack 16000 BTC During Downtrend (https://www.mitrade.com/insights/news/live-news/article-3-1062800-20250823) [5] Bitcoin Falls Even as U.S., EU Reveal Deal on Trump Tariffs (https://coingape.com/bitcoin-falls-even-as-u-s-eu-reveal-deal-on-trump-tariffs/) [6] OG Bitcoin Whale Dumps BTC for $330M Ethereum Position (https://finance.yahoo.com/news/og-bitcoin-whale-dumps-btc-183928530.html)