Ethereum News Today: Big Bitcoin Whale Shifts $4 Billion to Ethereum—Why?

Bitcoin held steady at $109,551 in early trading on Monday, according to The Block’s crypto price page, as traders increasingly shifted attention toward Ethereum, which edged slightly lower to $4,471.5 [2]. This shift reflects a broader trend of capital rotation from Bitcoin to the second-largest cryptocurrency by market capitalization, a move amplified by recent activity from a major Bitcoin whale. Over the weekend, a whale wallet—identified by on-chain analytics firm Lookonchain—sold 2,000 BTC, worth $215 million, to purchase 48,942 ETH within four hours. This followed a similar 4,000 BTC-to-ETH swap the previous day, adding 96,859 ETH to its holdings. In total, this wallet has accumulated 886,317 ETH, valued at approximately $4 billion, marking one of the most significant fund rotations between the two cryptocurrencies in recent months [2]. The whale, which had held over $5 billion in Bitcoin, has been active since August after a seven-year dormancy, with analysts suggesting that such movements often influence broader market sentiment as traders follow its lead.

The Ethereum-to-Bitcoin price ratio has been a key indicator for market observers. The ratio, which divides the price of Ether by that of Bitcoin, reflects Ether’s relative performance. Recent outflows from Bitcoin ETFs and inflows into Ethereum ETFs have underscored the growing appeal of the altcoin. In August alone, spot Bitcoin ETFs recorded a net outflow of $751 million, while Ethereum ETFs attracted $3.87 billion in net inflows, according to SoSoValue data [2]. This shift may reflect investor confidence in Ethereum’s post-Merge improvements and the network’s ongoing role as a hub for decentralized applications (dApps) and smart contracts. With 158 of the top 200 tokens by market cap built on the Ethereum blockchain as of May 2023, the platform remains the dominant ecosystem for decentralized finance (DeFi) and tokenized assets [1].

The Ethereum Merge, completed in September 2022, marked a pivotal upgrade in the cryptocurrency’s history. The transition from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism reduced energy consumption and redefined the economics of network security. Unlike Bitcoin’s fixed supply of 21 million BTC, Ethereum’s supply has since the Merge shown a net decline, shrinking by 0.29% annually. The total supply peaked at 120,532,870.5 ETH on July 7, 2022, and has since trended downward, adding another layer of scarcity and value proposition to the token [1].

Analysts suggest that Ethereum’s technical upgrades and network activity have contributed to its outperformance against Bitcoin, particularly as the market shifts toward altcoins with more immediate use cases and active development. Ethereum’s role as the primary platform for DeFi, stablecoins, and tokenized assets has made it a key player in the broader crypto market. The recent whale activity and ETF inflows indicate a growing preference for Ethereum as a medium-term investment vehicle, especially as traders seek exposure to a network with tangible utility and innovation.

In the broader market context, Ethereum’s performance has been supported by its post-Merge fundamentals and increased institutional interest. With the network’s energy efficiency and transaction finality improving, Ethereum has become more attractive to both retail and institutional investors. As Bitcoin remains in a consolidation phase, the focus on Ethereum reflects a shift in risk appetite toward assets with more immediate growth potential. The ongoing whale activity and ETF flows suggest that this trend is likely to continue in the coming months, particularly as Ethereum’s ecosystem continues to expand and attract new users and developers.

Source: [1] Ethereum vs. Bitcoin (https://www.longtermtrends.net/ethereum-vs-bitcoin/) [2] Bitcoin whale ramps up BTC-to-ETH rotation, amassing $4 ... (https://www.theblock.co/post/368892/bitcoin-og-whale-4-billion-ethereum)