Whales Dump Bitcoin, Snatch Up $456M in Ethereum — Altseason Next?

Cryptocurrency whales are making a decisive shift in strategy, dumping Bitcoin while quietly scooping up hundreds of millions of dollars worth of Ethereum, sparking renewed speculation that an “altseason” could be on the horizon.

Blockchain analytics firm Arkham reported on Tuesday that nine large whale addresses purchased a combined $456.8 million in Ether.

9 WHALE ADDRESSES JUST BOUGHT $450M OF ETH

9 massive addresses just bought a total of $456.8 MILLION USD of ETH. 5 of these addresses received from Bitgo while the remainder purchased their ETH with Galaxy Digital OTC.

Whales are buying $ETH.

Addresses:… pic.twitter.com/TceZQlng6w

Of those, five addresses received transfers from custodian BitGo, while the remainder bought their ETH through Galaxy Digital’s over-the-counter desk.

Arkham described the purchases as “massive,” highlighting the growing appetite for Ethereum among deep-pocketed investors.

The move was quickly echoed by fresh data from Lookonchain, which revealed that eight newly created wallets snapped up another 35,948 ETH, worth $164 million, within just eight hours.

These wallets received their coins from FalconX and Galaxy Digital, reinforcing the view that institutional-grade platforms are serving as key pipelines for whale accumulation.

A Bitcoin OG "bc1qlf" sold another 750 $BTC($83.11M) in the past 2 hours.

12 years ago, he received 5K $BTC($1.66M then) at only $332 and only started selling after $BTC broke $90K in December 2024.

He has sold 1,750 $BTC($189.3M) at $108,160 avg, leaving 3,250 $BTC($360.75M).… pic.twitter.com/m3G3lhgm9C

The whale activity comes against a backdrop of diverging performance between the two largest cryptocurrencies. Over the past month, Ether has surged nearly 18.5%, while Bitcoin has slipped 6.4%.

Bitcoin touched an all-time high of $124,128 earlier this year but now trades 10.3% below that peak. By contrast, Ether reached $4,946.05 and currently sits only 6.7% off its record, suggesting stronger relative momentum.

Analysts note that some long-dormant Bitcoin holders have begun taking profits. A whale who first acquired BTC in 2013, when the token traded at just $332, recently moved 750 BTC, worth $83.3 million, to Binance.

A Bitcoin OG "bc1qlf" sold another 750 $BTC($83.11M) in the past 2 hours.

12 years ago, he received 5K $BTC($1.66M then) at only $332 and only started selling after $BTC broke $90K in December 2024.

He has sold 1,750 $BTC($189.3M) at $108,160 avg, leaving 3,250 $BTC($360.75M).… pic.twitter.com/m3G3lhgm9C

Despite selling part of his stack, the investor still holds another 750 BTC in his original wallet and an associated address containing 2,500 BTC, valued at more than $276 million. On-chain observers speculated that the proceeds may be redirected into Ethereum.

Similar cross-asset plays have already been documented. Earlier this month, one whale sold 670 BTC, worth $76 million, to purchase 68,130 ETH valued at $295 million. Another address inactive since 2021 withdrew 6,334 ETH, around $28 million, from Kraken, signaling renewed activity from sidelined investors.

In an even larger operation, an unknown participant reportedly purchased $2.55 billion in Ether through Hyperliquid and staked the coins, effectively locking them out of circulation.

THIS TRADER MADE $50 MILLION ON $ETH AND WITHDREW IT TO BUY EVEN MORE ETH

This Hyperliquid whale made $49.55 million longing ETH Perps on 4 accounts.

Then, he withdrew it to these addresses where he was buying $2.5 BILLION of ETH in spot.

ETH addresses:… https://t.co/8BR7BOBfZp pic.twitter.com/r9leMfUeZb

Such moves suggest that major players are using Bitcoin profits to rotate into Ether during moments of correction. CoinGecko data shows that ETH has dropped 13% in recent days, falling from $4,900 to around $4,300.

Analysts argue that whales view this pullback as an attractive entry point for accumulation, adding fuel to Ethereum’s long-term bullish case.

Market strategists also point to structural differences between Bitcoin and Ether that may be driving the shift. Analyst Willy Woo explained that much of Bitcoin’s supply remains concentrated in the hands of early investors, or “OG whales,” who acquired their holdings for $10 or less.

With such a low cost basis, these investors can still realize astronomical profits even at today’s prices, creating persistent sell pressure that absorbs large amounts of new capital before prices can climb higher.

In contrast, Ethereum’s supply is seen as more dynamic, with staking mechanisms providing additional incentive for whales to accumulate and hold. Analyst Ted Pillow argued that distribution pressure on Bitcoin is capping its rallies, while flows into Ether are gaining strength.

Whales are taking profit vs. cost basis, with flows rotating into $ETH.

That weakens BTC’s upside momentum and structure.

Distribution pressure is real, rallies stay capped unless the signal stabilizes.

If it does, $BTC still has chances to retest resistance before deeper gaps… pic.twitter.com/0ItoGf3qOt

“Whales are taking profit versus cost basis, with flows rotating into ETH,” he said, warning that Bitcoin’s upside momentum remains vulnerable unless selling pressure stabilizes.

Ethereum is pulling ahead of Bitcoin as institutional capital shifts into Ether, with analysts pointing to the strongest signs of an altcoin rotation in four years.

According to CryptoQuant, Ethereum is showing firmer momentum than Bitcoin, supported by rising open interest in CME futures contracts. Unlike Bitcoin, which has struggled to recapture institutional demand despite hitting fresh highs this year, Ethereum’s latest rally is drawing in new liquidity.

Analysts say this marks a structural separation, with ETH backed by fresh inflows rather than speculative churn. Importantly, retail traders have not yet piled in, a factor that suggests Ethereum’s rise may be more sustainable in the short term.

Swissblock’s “Altcoin Vector” analysis shows that Bitcoin’s dominance cycle is weakening, opening the door for capital to rotate into Ethereum and other altcoins. Liquidity cycles also show ETH strength correlating with market peaks, while Bitcoin rallies tend to stall at resistance, triggering altseason impulses.

Analysts highlight that BTC’s current consolidation between $109,000 and $121,000 resembles past phases where altcoins began to outperform.

The shift is also playing out in ETF flows. Last week, U.S.-listed spot Bitcoin ETFs suffered more than $1 billion in cumulative outflows over six sessions, including $523 million in redemptions on August 19.

In contrast, Ethereum ETFs attracted $455 million in inflows on Tuesday alone, led by BlackRock’s ETHA and Fidelity’s FETH. Inflows into Ether products have repeatedly outpaced Bitcoin ETFs in recent weeks, echoing a trend first noted in July.

Bitcoin’s dominance has slipped to 57.3%, down nearly 3% over the past month, underscoring the scale of the capital shift. With Ethereum strengthening and altcoins poised to benefit from renewed liquidity, analysts warn the long-awaited altseason may already be underway.

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