Bitcoin whales, or large tokenholders, are selling more of the world’s first cryptocurrency to gain exposure to Ether’s price.
The move signals the market’s “natural rotation” into Ether (ETH) and other altcoins with more upside potential, Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, told Cointelegraph.
The growing investor capital rotation occurred despite increasing concerns over incoming selling pressure, due to the Ethereum validator queue reaching an all-time high of nearly $5 billion worth of ETH tokens on Thursday, pushing withdrawal times to a record 18 days, 16 hours.
Part of the shifting investor mindshare may be attributed to a massive $11 billion whale, which rotated over $2.59 billion worth of Bitcoin (BTC) into a $2.2 billion spot Ether and a $577 million perpetual long position, locking in $33 million worth of profit from the perps long on Monday, Cointelegraph reported.
Crypto whales buy $456M Ether in “natural rotation” from Bitcoin
Cryptocurrency whales, or big investors, are buying hundreds of millions of Ether, as analysts point to an organic rotation of investor mindshare toward altcoins with more upside potential.
Nine “massive” whale addresses bought a cumulative $456 million worth of Ether (ETH) from Bitgo and Galaxy Digital, blockchain data platform Arkham said in a Tuesday X post.
The growing whale demand for the world’s second-largest cryptocurrency signals the market’s “natural rotation” into Ether and other altcoins with more upside potential, according to Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen.
“A lot of this looks like natural rotation, investors locking in profits from Bitcoin’s run and moving into other tokens to catch potential upside,” the analyst told Cointelegraph, adding:
“Ether in particular is benefiting because it has strong current mindshare and momentum from Ether treasury companies.”
While recent Ether whale movements are “notable,” the “broader trend is simply that flows are spreading out beyond Bitcoin as market participants look for the next move,” the analyst…
..
