Bitcoin News Today: Whales Swap BTC for ETH as Institutional Demand Stacks Up

Bitcoin and Ethereum Fear & Greed Index Review Focuses on Whales

Significant shifts in Bitcoin and Ethereum markets have drawn attention to the actions of large institutional and retail investors. Notably, a prominent Bitcoin whale recently dumped 4,000 BTC—worth approximately $435 million—and converted it into 96,859 ETH, valued at roughly $433 million. This marks a continuation of a trend where the investor, linked to wallets holding $11 billion in Bitcoin, has been reactivating long-dormant accounts to shift capital toward Ethereum. Over the past two weeks, the whale has accumulated 837,429 ETH, valued at over $3.8 billion, as reported by on-chain analytics firm Lookonchain [1].

Ethereum has benefited from this shift, outperforming Bitcoin in August by nearly 24% and trading at $4,424 at press time. The increased accumulation by large holders appears to be influencing market sentiment. According to traders, such concentrated buying can lift broader market optimism and potentially attract other large investors into the market [2]. However, the token’s price remains subject to short-term volatility, particularly as liquidity clusters may trigger pullbacks.

In parallel, Ethereum derivatives activity shows a more nuanced picture. Derivatives volume fell 14% to $61 billion, while open interest climbed 2.90% to $60 billion. The OI Weighted metric declined slightly, indicating a marginal reduction in positioning strength. Analysts interpret this as a sign of market consolidation, with traders holding positions rather than opening new ones [2]. Despite this, Ethereum’s Fear & Greed Index currently reads 46, indicating a cautious, fearful market. Over the past 30 days, the asset has posted 47% green days, a sign of consistent, if uneven, demand.

Meanwhile, Bitcoin remains in a holding pattern despite strong accumulation activity. Bitwise data shows that corporate and institutional demand for BTC has surged, with 140,600 BTC added to corporate treasuries in July and August alone. This figure nearly equals the total supply of new BTC mined in a year, highlighting a historic imbalance in supply and demand. Institutional demand in 2025 has absorbed over 690,000 BTC, compared to just over 109,000 BTC in new supply, indicating a demand ratio of over 6.3 to 1 [3]. Retail investors have also joined the accumulation trend, with Bitcoin wallet cohorts showing the strongest buying activity since April.

Bitcoin’s price has remained relatively flat near $108,716 despite this strong accumulation. Technical analysis from CoinDesk Research highlights a recent narrow trading range between $108,350 and $109,518, with key resistance levels around $109,500 and $110,500. A surge in trading volume to 8,272 BTC at 13:00 UTC suggests institutional involvement at these levels. However, analysts caution that a potential retest of the $100,000 level remains a risk amid ongoing macroeconomic uncertainty and elevated volatility.

In summary, both Bitcoin and Ethereum are undergoing periods of significant whale activity and institutional accumulation. While Ethereum appears to be gaining momentum with a shift in capital from BTC holders, Bitcoin is showing signs of a potential breakout as corporate and retail investors continue to “stack” holdings. Market observers are closely monitoring price stability, derivatives activity, and whale movements to gauge the next major direction for both cryptocurrencies.

Source:

[1] Bitcoin Whale Dumps BTC and Stacks ETH (https://cryptobriefing.com/bitcoin-whale-dumps-btc-stacks-eth/)

[2] Whales Load Up On Ethereum, But Analysts Fear $4K Dip (https://www.mitrade.com/insights/news/live-news/article-3-1085094-20250901)

[3] Bitcoin Post-Halving Top? Analyst Says BTC Demand Outpaces Supply (https://www.coindesk.com/markets/2025/08/31/analyst-sees-major-bitcoin-breakout-as-retail-and-institutions-stack-relentlessly)