Bitcoin Whale Rotation: Is BTC Losing Ground to Ethereum?

The cryptocurrency market is never short of surprises, and the latest moves by a Bitcoin whale have once again stirred speculation across the industry. 

One of the earliest and wealthiest Bitcoin holders has begun shifting billions of dollars worth of BTC into Ethereum, signaling a potential pivot toward altcoin dominance. 

At the same time, Bitcoin has shown signs of resilience, bouncing back above $115,000 amid heavy whale accumulation and reduced selling pressure. This dual narrative has created a fascinating backdrop for traders and investors who are trying to make sense of what comes next.

In this article, we will break down the recent whale activities, analyze Bitcoin’s price performance, and assess whether Ethereum’s growing momentum signals the beginning of a broader altcoin season.

Whale Moves: Billions Flow from BTC to ETH

On August 23, 2025, blockchain analytics firm Lookonchain revealed that a major Bitcoin whale had rotated thousands of BTC into Ethereum. 

The whale reportedly sold 4,000 BTC worth approximately $460 million, bringing his Ethereum exposure to over $806 million. His holdings now include 179,448 ETH purchased at an average of $4,490, with more than $100 million in unrealized gains.

The investor’s strategy goes beyond spot holdings. A significant portion of his exposure, 135,265 ETH, sits in leveraged long positions valued at roughly $581 million. 

This aggressive accumulation hints at high confidence in Ethereum’s near-term potential, especially as institutional interest in ETH builds and ETF approval looms in several jurisdictions.

These movements are not isolated. Matrixport-linked wallets recently funneled nearly $452 million worth of ETH into major exchanges while simultaneously withdrawing over 2,300 BTC. 

Such overlapping actions reinforce the narrative that large players are realigning portfolios in favor of Ethereum ahead of what many believe could be the start of an altcoin season.

Read Also: Bitcoin Whale Moves $113M BTC into $240M Ether Long

Bitcoin Price Analysis: Whales Accumulate Amid Dwindling Selling Pressure

While some whales are rotating out of BTC, others are quietly accumulating. Bitcoin’s recent bounce from a local low of $111,000 to $115,601 demonstrates that reduced selling pressure is giving BTC room to breathe.

According to CryptoQuant analyst Axel Adler, Bitcoin’s Spent Volume (SMA-7d) has fallen sharply to just 529,000 BTC per day, suggesting that the wave of sellers at current levels has dried up. 

Long-term holders booked only 7.2K BTC in profits, while short-term holders realized just 1.8K BTC—a sign of overall reluctance to sell.

At the same time, the Exchange Whale Ratio has fallen to a 12-day low of 0.43. Historically, this indicates that fewer whales are sending coins to exchanges, pointing toward accumulation rather than liquidation. 

Supporting this, Checkonchain data shows a net outflow of more than 20,000 BTC from exchanges, largely attributed to mega-whales.

This collective behavior often precedes upward pressure, suggesting that BTC could test the $117K–$119K range if buying momentum continues. However, if sellers return, Bitcoin could risk a retest of the $112K support level.

Read Also: Bitcoin Soars to $114K on Whale Frenzy, What’s Next for Ethereum & XRP?

Ethereum vs. Bitcoin: The Battle for Market Dominance

The whale rotation into Ethereum is more than just a trading move—it highlights the shifting dynamics within the broader crypto ecosystem. 

Ethereum continues to benefit from institutional adoption, with partnerships like its integration into financial data providers and potential ETF approvals fueling long-term confidence.

On the other hand, Bitcoin remains the dominant store of value and continues to attract accumulation during dips. 

However, its lack of major upcoming catalysts compared to Ethereum’s growing utility in decentralized finance (DeFi), tokenization, and enterprise adoption may explain why some whales are diversifying aggressively.

If altcoin season gains momentum, Ethereum could outperform BTC in the short to medium term. Still, Bitcoin’s resilience as the market’s anchor asset ensures that it will remain central to any broader rally.

Conclusion

The crypto market is currently defined by two competing whale strategies: one signaling confidence in Ethereum’s future dominance, and another reinforcing Bitcoin’s long-term strength through accumulation. 

Whether this whale rotation truly marks the start of an altcoin season or simply a temporary portfolio adjustment remains to be seen.

For investors, the key takeaway is to monitor whale movements, exchange flows, and regulatory developments closely. 

Both Bitcoin and Ethereum remain critical players in the digital asset landscape, and their interaction could shape the next major phase of the crypto cycle.

The crypto market never stands still, whales, institutions, and retail investors are constantly reshaping its dynamics. To stay ahead of the next big move, sign up on Bitrue today and get exclusive updates, insights, and rewards.

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FAQ

What does whale activity mean for Bitcoin’s price?

Whale activity often signals major shifts in market sentiment. Accumulation usually supports price stability and potential rallies, while large outflows to exchanges can indicate upcoming selling pressure.

Why are Bitcoin whales moving funds into Ethereum?

Many whales believe Ethereum has stronger growth potential in the near term due to institutional adoption, ETF prospects, and its central role in DeFi and tokenization.

Is this the start of altcoin season?

The large-scale rotation into Ethereum and other top altcoins could be an early indicator of altcoin season. However, confirmation depends on whether BTC dominance declines further and altcoins consistently outperform.

Can Bitcoin still reach new highs despite these rotations?

Yes. Historical data shows that Bitcoin often rallies after periods of whale accumulation. As long as whales continue withdrawing BTC from exchanges, the supply squeeze could drive prices higher.

Does this mean Bitcoin is losing dominance?

Not necessarily. While some whales are rotating into ETH, others are still accumulating BTC. Bitcoin continues to hold strong as a store of value and remains the anchor of the crypto market.