$5 Billion BTC Whale Buys $1 Billion ETH-Whales are Dumping Bitcoin for Ethereum

• Whales are dumping Bitcoin for Ethereum, signaling a significant shift in market supply.

• Capital has rotated away from Bitcoin, with Ethereum recording $61 billion in capital inflow

Over the last month, Ethereum has outperformed Bitcoin significantly. Over this period, Bitcoin and Ethereum rallied to a new all-time high of $4.9k, while Bitcoin has failed to maintain an upward momentum. Thus, Bitcoin has experienced significant losses, dropping to $107k before recovering. 

We have seen capital shift from Bitcoin to Ethereum, primarily driven by Bitcoin whales. According to Checkonchain data, $61 billion has moved from other assets, including Stablecoins and Bitcoin. 

Whales are Dumping Bitcoin for Ethereum 

According to Arkham, a $5 billion BTC whale started dumping its holdings for Ethereum. Today, this whale has bought $1.1  billion worth of ETH after moving BTC of the same value. 

This whale has used chiefly a new wallet and started buying ETH through Hyperunit/HL. The whale bought $2.5 billion worth of ETH last week and has continued to accumulate the altcoin.

This is not the only whale switching from Bitcoin to Ethereum. Over the past two weeks, Lookonchain has reported that a Bitcoin OG has massively dumped BTC for ETH. Today, this Bitcoin OG sold 1k BTC and bought $108.27 million worth of ETH. 

In total, Bitcoin OG has bought $3 billion worth of ETH. After investing in ETH longs, he closed all longs worth $433 million and then bought ETH Spot. This has become a notable trend among large entities that have transitioned to Ethereum after leaving Bitcoin. 

Institutions' Demand for ETH Soars 

While Whales dump Bitcoin for Ethereum, institutions are aggressively accumulating ETH. Some of the major institutions buying ETH include BlackRock, Fidelity, Sharplink Gaming, Grayscale, and Bitmine. For example, BlackRock bought $262 million worth of ETH over the past day. 

Besides Blackrock, Bitmine has become the largest Ethereum treasury company. According to a report by Arkham, Bitmine now holds 2.7 million ETH, worth approximately $6.8 billion, on the road to reaching 5% of the ETH total supply, valued at $27 billion. 

Now, Ethereum is facing the highest demand from institutions, and this demand has played a significant role in pushing ETH to a new high. With institutions buying ETH through ETFs and also on the spot market, it's setting the altcoin up for a strong rally just like Bitcoin did after institutions set eyes on it.

Can Bitcoin Whales Push Ethereum to a historical rally?

Ethereum is facing unusual market conditions, with its biggest competitor becoming a major supporting force. Now, Bitcoin holders have turned to selling BTC for ETH.

As whales shift their investments from Bitcoin to Ethereum, it has resulted in significant demand, which in turn has boosted its upward potential.

In a surprising turn of events, if these Bitcoin whales continue to sell BTC for ETH, the market is likely to respond positively, setting the stage for a strong rally.

Therefore, if demand in the market remains stable, ETH will soon recover from the recent correction and reach a new all-time high. At the same time, continued capital rotation away from Bitcoin will likely cause the BTC price to struggle and potentially drop below $ 100,000.