Whales Ditching Bitcoin for Ether, Altcoin Rally Ahead?

Key Notes

• On-chain data shows that whales are reducing their Bitcoin exposure and accumulating Ethereum.
• Exchange data highlights BTC’s liquidity risk versus ETH’s tightening supply.
• Altcoin market signals suggest a potential rally similar to the 2018–2021 cycle.

While BTC $116 893 24h volatility: 4.2% Market cap: $2.33 T Vol. 24h: $50.51 B is holding on to $113,000 level, down 9% from its all-time high of $124,457, large investors are rotating capital into Ether. According to LookOnChain, one major whale is currently shorting Bitcoin while holding a significant long position in ETH.

Whale 0x06f5 is shorting $BTC while going long on $ETH .

Current positions:
800 $BTC ($90.1M)
3,000 $ETH ($12.75M) https://t.co/WpjsMpoM6X pic.twitter.com/SGflC7UEvy

— Lookonchain (@lookonchain) August 22, 2025

The whale wallet shows 800 BTC, worth approximately $90.1 million, and 3,000 ETH, valued at $12.75 million.

Meanwhile, a long-term Bitcoin holder, often referred to as a Bitcoin OG whale , has also recently begun shifting capital into ETH $4 872 24h volatility: 15.5% Market cap: $587.15 B Vol. 24h: $61.09 B . Earlier, on August 22, they sold 172.9 BTC (worth approximately $19.47 million) to purchase 4,567 Ether.

This Bitcoin OG just sold 172.9 $BTC ($19.47M) an hour ago to buy 4,567 $ETH spot.

In the past 2 days, he has bought 55,039 $ETH ($237M) spot and opened a massive 135,265 $ETH ($577M) long position. https://t.co/tvN27thq28 pic.twitter.com/j5hFoKAVr9

— Lookonchain (@lookonchain) August 22, 2025

Their overall Ether exposure has surged, with 55,039 ETH (worth around $237 million) purchased directly and a 135,265 ETH (worth around $577 million) long position opened.

Ether Exchange Reserves Shrink

At the same time, data from CryptoQuant highlights a contrast between the two largest cryptocurrencies. Bitcoin’s exchange reserves remain steady around 2.53 million BTC, suggesting that a significant portion of the supply remains liquid and readily available for trading.

This, combined with Bitcoin’s pullback from $123,000 to $113,000, could indicate short-term correction risk.

On the other hand, Ethereum continues to record substantial net outflows from exchanges. Several large spikes exceeding -300,000 ETH were seen in late July and mid-August. This suggests that the cryptocurrency is being moved to cold storage or institutional custody.

These movements tighten available supply and add strength to a bullish sentiment. At the time of writing, ETH trades around $4,300 and is viewed by experts as one of the best cryptos to buy in 2025.

Altcoin Market Signals Point to Rally

Bitcoin dominance has slipped nearly 6% since June, a decline that typically coincides with renewed strength in the altcoin market.

Popular crypto trader Merlijn pointed out on X that the altcoin market capitalization chart has repeated a familiar pattern. The setup resembles the 2018–2021 double bottom structure, along with a MACD bullish crossover.

ALTCOIN MARKET CAP JUST TRIGGERED THE 2018–2021 SETUP.

Double bottom confirmed. MACD crossover active.

Last time? Altcoins exploded 15x.
This time… the engine is even bigger.

The chart isn’t whispering. It’s screaming.
The altcoin era has begun, this is ignition. pic.twitter.com/oY3Q45uyIK

— Merlijn The Trader (@MerlijnTrader) August 21, 2025

Historically, this pattern preceded an explosive multi-fold rally across altcoins.

The altcoin market cap chart now shows a confirmed breakout above resistance, indicating that altcoins may experience another strong cycle .

Bitcoin Hyper Gains Momentum Amid Investor Shift

As Bitcoin whales redirect their focus toward Ether, Bitcoin Hyper (HYPER) is emerging as a strong contender.

Bitcoin Hyper is built to tackle Bitcoin’s well-known limitations, such as slow transaction speeds, high fees, and the absence of native smart contract capabilities. The project aims to improve scalability in the Bitcoin ecosystem by introducing a high-performance Layer 2 framework.

Its architecture routes transactions through an optimized virtual machine, ensuring faster and more cost-efficient execution before final settlement occurs on Bitcoin’s base chain for maximum security. By combining this efficiency with Bitcoin’s reliability, Bitcoin Hyper offers a powerful dual-layer model.

HYPER Tokenomics

The HYPER token functions as the core utility of the network, covering gas fees, allowing staking, and unlocking premium ecosystem utilities. This makes it a key driver of Bitcoin Hyper’s ecosystem growth.