Skip to main content

Bitcoin OG Sells Another 4,000 BTC To Buy Ethereum As Capital Rotation Intensifies

After setting a new all-time high of $124,500, Bitcoin is now battling to hold the $115,000 level as support. The bulls, who dominated just days ago, are struggling to spark a fresh rally, leaving the market in a delicate phase. While fundamentals such as institutional adoption and strong holder demand continue to support the broader uptrend, capital flows suggest a new dynamic is at play.

Several analysts note signs of capital rotation from Bitcoin into altcoins, a pattern that often marks transitions between phases of the market cycle. Ethereum, in particular, is emerging as a major destination for this shift.

Adding to the intrigue, on-chain intelligence firm Lookonchain has been tracking the movements of a long-dormant Bitcoin OG whale, who has reawakened with extraordinary activity. On Friday, the whale deposited 300 BTC ($34.86 million) into Hyperliquid to sell for Ethereum. His bold strategy is paying off: he’s now sitting on over $100 million in unrealized profits.

The whale currently holds a 135,265 ETH ($581M) long position at a $4,295 average entry, up $58 million, and also accumulated 122,226 ETH ($535M) spot at a $4,377 average, up $42 million. This aggressive rotation underscores a pivotal moment—one where Bitcoin consolidates, but altcoins, led by Ethereum, may capture the spotlight.

Bitcoin OG’s Bold Rotation Into Ethereum

According to Lookonchain, the mysterious Bitcoin OG whale continues to dominate market headlines with aggressive on-chain moves. Most recently, he transferred another 4,000 BTC (~$460 million) into exchanges, where the funds were converted into Ethereum. This marks yet another large-scale repositioning that has captured the attention of analysts and investors alike.

Bitcoin OG Transactions | Source: Lookonchain

So far, the whale has accumulated a staggering 179,448 ETH (~$806 million) at an average price of $4,490, alongside a 135,265 ETH ($581 million) long position that remains open. These bold allocations underscore a decisive rotation strategy away from Bitcoin and into Ethereum, suggesting a bet on ETH’s outperformance in the coming phase of the cycle.

The implications are significant. On one hand, such a massive capital shift highlights growing institutional-style conviction in Ethereum as it pushes through all-time highs and challenges Bitcoin’s dominance. On the other hand, it raises concerns about short-term volatility.

Analysts warn that despite the bullish outlook, a shakeout may occur before sustained gains materialize. With leverage in derivatives markets climbing and liquidity thinning in spot trading, sharp pullbacks could easily flush out overextended positions.

Bitcoin Vs. Ethereum: Weekly Chart Analysis

The ETH/BTC weekly chart shows Ethereum gaining significant ground against Bitcoin after a long downtrend that lasted from mid-2022 to early 2025. ETH has now rallied to the 0.041 BTC level, posting strong bullish candles and reclaiming key moving averages. The 50-week SMA (blue) has just been broken to the upside, and price is testing the 100-week SMA (green), an important resistance zone. If ETH manages to sustain momentum above this level, the next key target lies near the 200-week SMA (red) around 0.055 BTC.

Ethereum shows strength against BTC | Source: ETHBTC chart on TradingView

This rotation is especially important because ETH has been underperforming Bitcoin for over two years. The recent surge signals a potential capital rotation from BTC into ETH, a trend reinforced by large institutional buys and whales shifting positions into Ethereum.

On the downside, if ETH/BTC faces rejection at the current resistance, the pair could retest support around 0.035 BTC, which aligns with previous consolidation. However, momentum indicators suggest strength is currently with Ethereum.

Featured image from Dall-E, chart from TradingView



from Bitcoinist.com https://ift.tt/NBDFY5h
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more