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

Large Bitcoin 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, Ethereum 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 Digital [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].

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