Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
A multi-billion dollar Bitcoin whale has made a significant strategic shift, moving a substantial portion of their portfolio from Bitcoin into Ether, signaling strong confidence in the world’s second-largest cryptocurrency. Over the past week, the whale, with an estimated portfolio exceeding $11 billion, executed a series of maneuvers including selling Bitcoin, acquiring spot Ether, and engaging in profitable perpetual long positions on the decentralized exchange Hyperliquid, culminating in further spot Ether purchases earlier this week.
Whale Rotates Billions from BTC to ETH
Last week, the prominent investor liquidated 22,769 Bitcoin, valued at approximately $2.59 billion. These funds were then rotated into 472,920 spot Ether, amounting to $2.2 billion, alongside a $577 million Ether perpetual long position opened on Hyperliquid.
On Monday, the whale continued their active trading, closing $450 million worth of the perpetual long position at an average Ether price of $4,735. This move secured a profit of $33 million, which was immediately followed by the acquisition of an additional $108 million worth of spot Ether.
Market Dynamics and Analyst Outlook
This substantial capital rotation coincides with a notable increase in whale demand for Ether over the past month. During this period, Ether’s price surged by almost 25%, significantly outperforming Bitcoin, which experienced a 5.3% decline over the last 30 days.
Analysts are closely observing these large-scale rotations, with some attributing last week’s Bitcoin slump to such significant shifts in investor capital. The prevailing sentiment among market observers suggests that a lack of momentum for Bitcoin in the near term could further enable capital to flow into Ether.
According to market projections, Ether may target a price of $5,200, potentially reaching a new all-time high, while Bitcoin is expected to trade within the $110,000–$120,000 range over the next one to two weeks. On-chain data further supports the narrative of ongoing capital rotation, indicating that whales are actively selling Bitcoin to increase their exposure to Ethereum, thereby accelerating ETH’s upward momentum.
The multi-billion dollar whale’s aggressive pivot from Bitcoin to Ether highlights a growing institutional conviction in ETH’s near-term upside potential. This strategic reallocation, coupled with Ether’s recent market outperformance and positive analyst outlooks, suggests a period of sustained interest and potential growth for the second-largest cryptocurrency.
