Recently, a growing number of crypto investors may have noticed an interesting phenomenon—while Bitcoin, the world's largest cryptocurrency, continues to experience high volatility and even weakness, the second-largest cryptocurrency, Ethereum, has shown significantly stronger performance...

Many analysts believe that this divergence in trends seems to be related to large holders shifting their portfolios from Bitcoin to Ethereum.

Last week, a dormant "Bitcoin whale" that had been inactive for seven years suddenly awakened and clearly joined the camp of this internal "great shift" within the crypto circle.

It is reported that last week, this "Bitcoin whale" with holdings exceeding $11 billion sold 22,769 Bitcoins worth $2.59 billion (approximately RMB 18.5 billion), converted the funds into 472,920 spot Ether (worth $2.2 billion), and established a $577 million long position in Ethereum perpetual contracts on the decentralized exchange Hyperliquid.

According to data from blockchain intelligence platform Lookonchain, on Monday, the whale closed a $450 million long position in perpetual contracts when Ethereum was priced at $4,735, locking in a profit of $33 million, and subsequently purchased an additional $108 million worth of spot Ether.

Lookonchain added in an X post on Monday, "He still holds a long position of 40,212 Ether (worth $184 million) in perpetual contracts, with an unrealized profit of over $11 million."

Data from TradingView shows that over the past month, as demand for Ethereum from large investors has significantly increased, the divergence in strength between Bitcoin and Ethereum has become more pronounced—Ethereum's price has risen by nearly 25% during this period, while Bitcoin has fallen by 5.3%.

Cryptocurrency traders often track the movements of whales in the crypto circle to gauge short-term market trends.

Analysts, including Willy Woo, pointed out that these whales' capital rotation was the main reason for Bitcoin's drop to $112,000 last Sunday.
According to Gracy Chen, CEO of Bitget, the sixth-largest cryptocurrency exchange by daily trading volume, Bitcoin may continue to lack momentum over the next two weeks, which could lead to investor funds flowing into Ethereum, signaling new potential all-time highs.

"Ethereum breaking through $4,300 indicates strong demand for its ecosystem and may kickstart a seasonal altcoin rally," Chen said. "Over the next one to two weeks, Bitcoin is expected to trade in the range of $110,000 to $120,000, while Ethereum will perform more strongly, targeting a range of $4,600 to $5,200."

Chen noted that Federal Reserve Chair Jerome Powell's "surprisingly dovish remarks" last Friday were a "key catalyst" boosting risk appetite among cryptocurrency investors. "On-chain data shows that capital rotation is underway, with whales selling Bitcoin to increase their exposure to Ethereum, further accelerating Ethereum's momentum," she pointed out.

It is worth mentioning that on several trading days this month, the trading volume of Ethereum ETFs has matched or even exceeded that of Bitcoin ETFs, all following a wave of corporate buying enthusiasm.