Ethereum News Today: September Crypto Shuffle: Whales Trade BTC for ETH as Altcoin Season Looms

September has historically been a challenging period for Bitcoin and altcoins, with market participants bracing for potential corrections. Analysts have observed a pattern where Bitcoin experiences a pullback, typically between 10% and 15%, before stabilizing and potentially surging in the fourth quarter. Recent on-chain data indicates that Bitcoin has been consolidating, with liquidity slowly rotating out of BTC and into other digital assets. For example, whale activity has shown a trend of swapping BTC for ETH, with over $4 billion in Ethereum being purchased from Bitcoin large wallet addresses, signaling a shift in market sentiment [4].

Ethereum appears to be a focal point during this rotation, as it continues to serve as a foundational blockchain for stablecoin issuance and institutional staking. Over $160 billion in stablecoin supply is currently supported by Ethereum, and the total stablecoin supply on the network has more than doubled since January 2024 [1]. This increased adoption has led to a surge in ETH’s relevance, particularly with major institutions such as BlackRock, Fidelity, and Grayscale managing millions of ETH as part of their treasuries [2]. Some of these holdings are actively staked, earning between 3% and 5% annual percentage yield, further reinforcing Ethereum’s utility beyond speculative trading.

The capital reallocation from Bitcoin to Ethereum has also created a favorable environment for altcoins. Analysts have observed that as major BTC holders book profits and reallocate funds into ETH, altcoin activity tends to follow suit. This trend supports the idea of an impending altcoin season, where smaller cryptocurrencies could benefit from increased liquidity and risk-on sentiment. For instance, Ethereum co-founder Joe Lubin has reiterated that Wall Street is expected to stake Ether, replacing many siloed financial infrastructures and potentially flipping Bitcoin’s monetary base [1]. He has even suggested that Ethereum could rally 100x from its current levels over time, a claim he shares with other prominent analysts such as Tom Lee, who has projected Ethereum could rise to $5,500 in the near term and reach $12,000 by year-end [1].

However, the road to a Q4 recovery is not without risks. Several altcoins are at the brink of major liquidations in the first week of September due to imbalanced short and long positions. Ethereum, for instance, faces a high probability of triggering $6 billion in short liquidations if it reaches $4,925, while XRP and Pyth Network (PYTH) also show signs of volatility-driven exposure. These liquidations could exacerbate short-term price swings, increasing the likelihood of a deeper correction before a sustained recovery can begin [4].

Despite these challenges, the broader market remains optimistic about Ethereum and altcoins entering a bullish phase by the end of the year. The historical trend suggests that altcoin seasons typically begin in September, and with Bitcoin consolidating and liquidity shifting, the conditions are ripe for another cycle of explosive growth. Some analysts, such as 0xNobler, have predicted that smaller altcoins could achieve returns of 150x to 200x, echoing the gains seen in previous cycles [5]. The market is now closely monitoring Ethereum’s price action, as well as on-chain whale activity, to gauge when the correction will bottom and whether the anticipated Q4 recovery will materialize.

Source:

[1] Ethereum co-founder Joe Lubin Predicts 100x ETH Rally as ... (https://finance.yahoo.com/news/ethereum-co-founder-joe-lubin-135212233.html)

[2] Who owns the most Ether in 2025? The ETH rich list ... (https://cointelegraph.com/news/who-owns-the-most-ether-in-2025)

[3] How Will Bitcoin and Altcoins Perform in September? (https://finance.yahoo.com/news/bitcoin-altcoins-perform-september-133153634.html)

[4] 3 Altcoins at Risk of Major Liquidations in the First Week ... (https://www.mitrade.com/insights/news/live-news/article-3-1085978-20250901)

[5] Altcoin Season 3.0: Analyst Predicts Explosive September ... (https://cryptodnes.bg/en/altcoin-season-3-0-analyst-predicts-explosive-september-gains/)