FameEX Hot Topics | Bitcoin Whale Shifts $3.8B Into Ethereum, Signaling Growing Market Sophistication

Onchain data shows that the so-called “Bitcoin OG” whale, which began shifting its $11.4 billion Bitcoin fortune into Ethereum earlier in August, has continued its accumulation spree. Over the weekend, the whale’s ETH holdings climbed to $3.8 billion, underscoring a growing trend of large players diversifying away from Bitcoin as the market evolves.

Blockchain analytics platform Lookonchain reported that the whale sold 4,000 Bitcoin, worth about $435 million, and converted the proceeds into 96,859 ETH in just 12 hours. This entity was first flagged on August 25, when it was revealed to hold 100,784 Bitcoin, valued at over $11.4 billion at current prices. The whale’s ongoing rotation reflects a significant behavioral shift, as such long-standing Bitcoin holders had historically avoided allocating heavily to altcoins.

This development aligns with a broader pattern of whales diversifying in light of regulatory clarity in the U.S.. Henrik Andersson, CIO at Apollo Crypto, explained that while the intentions of individual whales can never be fully known, historical cycles often show capital rotating from Bitcoin to Ethereum, and later to altcoins. “After the GENIUS bill and other pro-crypto regulations, there is more gravity behind altcoins, particularly Ethereum, so it’s natural to see whales spreading their risk,” he said.

Ethereum’s recent performance appears to validate that trend. On August 24, ETH surged to a new all-time high of $4,946 before retracing to $4,389, down 1.2% over the past 24 hours, according to CoinGecko. Andersson noted that Bitcoin has traded sideways for months, while Ethereum has benefited from strong ETF inflows, especially throughout August. “ETF flows have heavily favored Ethereum, and in our view, this trend is set to continue in the medium term,” he added.

For many long-term whales, Bitcoin is increasingly treated as digital gold — a store of value with little yield. Ethereum, by contrast, offers staking rewards and access to the broader smart contract economy. Andersson suggested that if this whale activity persists, other altcoins could also benefit, marking the beginning of a “classic altseason rotation.” In such phases, Bitcoin remains strong, but capital flows into ETH and beyond as investors search for relative value and growth opportunities.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.