Are Bitcoin whales leaving while Ethereum gains?

As Bitcoin’s largest holders reduce their positions, the number of Ethereum whale wallets is increasing, fuelling speculation about a possible altcoin rotation led by Ethereum.

According to blockchain data shared by Santiment on July 29, the number of wallets holding at least 1,000 Bitcoin (BTC) has fallen by 1.61% in the past two weeks. In contrast, Ethereum (ETH) wallets with at least 10,000 ETH have grown by 8%, marking a clear difference in whale activity between the two leading cryptocurrencies.

In another post on X on the same day, Ali Martinez, a popular analyst, reported that some of the largest Ethereum holders accumulated over 220,000 ETH, worth about $840 million, in the preceding 48 hours. The scale of this activity has fueled talk of a capital rotation from Bitcoin to Ethereum, often seen at the start of an altcoin cycle.

Whales accumulate Ethereum, but not at Bitcoin’s expense

Despite growing ETH interest, on-chain data shows no major capital shift away from Bitcoin to Ethereum. A separate analysis by CryptoQuant’s Carmelo Alemán shows no clear sign of Bitcoin holders selling to buy ETH. Bitcoin’s Realized Capitalization recently reached a new all-time high of $1.018 trillion, indicating continued capital inflows and accumulation, and not outflows.

Alemán argues that Ethereum’s rally is being driven by new capital entering the ecosystem, not by money moving out of Bitcoin. Both assets appear to be benefiting from increased interest rather than competing for the same liquidity.

ETH gains outpace BTC in recent weeks

At press time, Ethereum is trading at $3,805, up 52% over the past 30 days and 2% in the last week. Bitcoin is up 9% on the month and 0.6% in the last week, holding at $117,966.

While Bitcoin has experienced stronger institutional demand based on capital inflows, Ethereum’s inflows have grown at a higher rate. A recent surge in Ethereum corporate treasuries, as well as sustained exchange-traded fund inflows, is expected to further boost ETH’s value in the coming months.