Ethereum whales flip the script on Bitcoin

August 25, 2025

 

Reading time: 5 minutes

Ethereum steals spotlight as whales rotate out of Bitcoin

Key points:

  • A Bitcoin whale sold $2.6B worth of BTC and rotated into $2.2B of ETH, fueling capital flows toward Ethereum.

  • ETH hit a record $4,946 with dominance rising to 14.98%, while analysts warn BTC looks “exhausted.”

News - Ethereum’s momentum surged over the weekend as whale activity and institutional accumulation pushed the token to fresh all-time highs above $4,900. 

According to Lookonchain, a Bitcoin whale worth more than $11 billion sold nearly 23,000 BTC for $2.6 billion, rotating into 472,920 ETH worth $2.2 billion alongside large perpetual long bets. The investor later locked in $33 million in profits before scooping up an additional $108 million in spot ETH.

The shift coincided with continued heavy accumulation by public treasuries. BitMine Immersion Technologies now holds more than 1.7 million ETH, worth about $7.9 billion, with another $562 million in cash reserves for future buys. Analysts say its aggressive fundraising and stock-driven acquisitions have helped it become one of the largest ETH corporate holders.

Capital rotation accelerates - ETH dominance in the crypto market rose to 14.98%, its highest level in nearly a year, as Bitcoin dominance fell to 58.2%. 

Over the past month, Ethereum gained more than 23% while Bitcoin slipped about 5%, highlighting clear capital rotation. 

Whale buying patterns and shrinking ETH exchange reserves added to confidence that Ethereum could extend gains, with Bitget CEO Gracy Chen forecasting a potential move to $5,200. CoinGecko co-founder Bobby Ong echoed the optimism, posting on X that Ethereum may break past another all-time high this week.

Whales move altcoin markets too - Not all large investors were buying. Some took profits as ETH reached new highs, including an 11-year whale cashing out 1,962 ETH for $4.7 million. Others doubled down, with three new wallets receiving over $51 million in ETH from Galaxy Digital. 

Side bets on altcoins like Chainlink, Aerodrome Finance, and Solana also revealed that capital flows are broadening beyond just ETH.

Bitcoin flash crash spurs Strategy’s $357M buy as whales pivot to Ether

Key points:

  • Strategy purchased 3,081 BTC worth $356.9 million as prices dipped near $112,000, bringing its August total to 3,666 BTC.

  • Heavy whale selling and over $1 billion in ETF outflows fueled volatility, while accumulation trends suggest long-term investor confidence.

News - Bitcoin endured a turbulent weekend, plunging below $111,000 in a sudden flash crash after a whale offloaded 24,000 BTC, triggering more than $550 million in liquidations. Prices later stabilized near $113,000. On-chain analysts also flagged other longtime whales rotating over $2 billion into Ether, adding to BTC’s sharp losses.

Even amid the selloff, Michael Saylor’s Strategy added to its already massive holdings. A new SEC filing revealed the firm bought 3,081 BTC for $356.9 million at an average price of $115,829, raising its total to 632,457 BTC. The purchase brings Strategy’s August acquisitions to 3,666 BTC, far fewer than the 31,466 BTC bought in July.

ETF flows also weighed heavily on the market, with spot Bitcoin funds recording $1.15 billion in outflows last week, the largest since March. Profit-taking and fading institutional demand underscored BTC’s correction, though $1 billion in exchange withdrawals over 24 hours signaled that some investors are buying the dip.

Accumulation vs. outflows - The contrast between $1.15 billion in ETF outflows and nearly $1 billion in exchange withdrawals highlights how institutional and retail players may be pulling in opposite directions. Analysts note this push-pull dynamic could keep volatility elevated in the short term.

Market context - Analysts say the next key levels remain the $111,980 support zone and resistance near $116,000. While whales continue to rotate into Ether, with ETH trading around $4,707 and holding firmer than BTC, some market voices remain optimistic about Bitcoin’s resilience. 

Trump adviser David Bailey insisted that institutional adoption makes a prolonged bear market unlikely, though others caution that macro shocks could still reset the cycle.

Grayscale eyes spot AVAX ETF, Solana treasury push gains steam

Key points:

  • Grayscale filed an S-1 with the SEC to convert its Avalanche Trust into a spot ETF that would trade on Nasdaq.

  • Galaxy Digital, Jump Crypto, and Multicoin Capital are raising $1 billion to form the largest Solana treasury to date.

News - Grayscale has taken another step in expanding its crypto ETF lineup, filing an S-1 with the U.S. SEC to convert its Avalanche Trust into a spot exchange-traded fund. If approved, the ETF would trade on Nasdaq and allow cash-based creations and redemptions. Coinbase would provide custody and execution services, while BNY Mellon would act as administrator.

The Avalanche Trust, launched in August 2024, currently manages under $15 million in assets. AVAX trades at about $24, down 9% year-over-year and more than 55% from its December peak. Grayscale’s move follows filings for XRP and Dogecoin products, signaling an effort to offer investors exposure beyond Bitcoin and Ethereum.

Meanwhile, Solana is at the center of a major treasury initiative. Galaxy Digital, Jump Crypto, and Multicoin Capital are reportedly raising $1 billion to create the largest SOL reserve, with Cantor Fitzgerald serving as lead banker. The plan involves acquiring a listed firm to establish a dedicated Solana treasury vehicle, with endorsement from the Solana Foundation.

Why it matters for altcoin ETFs - If approved, Grayscale’s Avalanche ETF would be among the first U.S.-listed funds tracking a smart contract blockchain outside the top two. This could pave the way for broader institutional allocation into mid-cap tokens.

Solana’s growing treasury race - The $1 billion Solana initiative would more than double the size of the largest existing SOL reserve. With SOL trading near $200, the effort underscores renewed institutional confidence in Solana’s post-FTX recovery and growing role as a corporate treasury asset.

Japan’s leaders back crypto, Metaplanet joins FTSE Index

Key points:

  • Japan’s Finance Minister endorsed crypto as part of diversified portfolios, while PM Ishiba positioned Web3 as a pillar of domestic growth.

  • Bitcoin treasury firm Metaplanet was upgraded to the FTSE Japan Index as the country moves forward on stablecoin regulation.

News - Japan’s Finance Minister Katsunobu Kato said cryptocurrencies deserve a place in diversified investment portfolios, citing the need for a sound trading environment despite their volatility. Speaking at the Web3 Conference WebX 2025 in Tokyo, Kato added that the government is working to support innovation without excessive regulation.

Prime Minister Shigeru Ishiba also took the stage, calling Web3 “a transformative turning point comparable to the Industrial Revolution.” He stressed that digital assets and blockchain technology can strengthen regional economies, highlighting use cases like the Shimane Prefecture’s Regional Coin Project and the Osaka-Kansai Expo.

Meanwhile, Tokyo-listed Bitcoin treasury firm Metaplanet has been elevated from small-cap to mid-cap, joining the FTSE Japan and FTSE All-World indices. The company now holds 18,991 BTC and aims to reach 210,000 BTC by 2027.

Stablecoin regulation gains pace - Japan’s Financial Services Agency has pushed for reclassification of crypto taxation and recently approved JPYC as the country’s first yen-backed stablecoin, set for issuance this fall. Panelists at the WebX Fintech Expo said Japan’s early regulations give it a global lead, though adoption remains slow compared to the US.

Domestic vs global priorities - While US leaders such as President Donald Trump frame crypto as a tool for global dominance, Ishiba emphasized Web3’s role in revitalizing Japan’s local economy. Analysts say this contrast underscores Japan’s focus on domestic resilience, even as its financial giants like SBI deepen blockchain partnerships abroad.

Did you know?

  • Corporate treasuries held at least 966,304 ETH, worth nearly $3.5 billion, on their balance sheets by the end of July 2025, up from just under 116,000 ETH at the end of 2024.

  • On July 31, 2025, SEC Chair Paul Atkins unveiled Project Crypto: a major regulatory initiative to differentiate crypto asset types (e.g., securities vs. non‑securities), simplify rules for ICOs/airdrops, and promote “super‑apps” integrating trading, staking, and lending under one license.

  • Ethereum just topped its previous all‑time high. As of August 22–25, 2025, Ether surged past its 2021 peak of ~$4,878, reaching approximately $4,945–4,948, a breakout fueled by anticipated Federal Reserve interest rate cuts and renewed ETF inflows.

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Top 3 coins of the day

XDC Network (XDC)

Key points:

  • XDC gained 0.13% in the past 24 hours to trade near $0.082.

  • The Parabolic SAR stayed overhead while the AO printed green bars after a long red stretch, though volume remained muted.

What you should know:

XDC held near $0.082 after cooling from its late-July high around $0.105. The Parabolic SAR stayed above the candles near $0.085, keeping the short-term tone cautious unless a flip occurs. The Awesome Oscillator (AO) turned green after a long time in weeks, suggesting that selling momentum had eased even as the indicator remained below zero. Trading volume stayed light compared with July’s surge, leaving conviction weak for now. Beyond the chart, XDC staking crossed $300M this month while 21Shares listed an XDC ETP in Switzerland, moves that tightened supply and improved institutional access. Support is at $0.080 with $0.077 below, while resistance sits between $0.085 and $0.090, followed by $0.095 and the $0.10 zone.

Key points:

  • VET slipped 1.19% in the past 24 hours to trade near $0.0257.

  • The Supertrend stayed in sell territory while the EWO turned green after a long red stretch, with the latest bar rising, though volume stayed muted.

What you should know:

VET cooled to $0.0257 after stalling beneath the Supertrend’s red ceiling near $0.0278. The indicator held bearish, keeping resistance overhead. The Elliott Wave Oscillator (EWO) flipped green for the first time in weeks, and the latest bar grew taller than the previous one, suggesting that bullish momentum had started to re-emerge. Volume remained lighter than July’s rally, hinting that conviction was still limited. Beyond the chart, VeChain secured institutional backing through BitGo’s regulated custody launch on July 29 and Franklin Templeton’s July 24 integration of VET into its $780M tokenized treasury fund, both of which strengthened its enterprise adoption case. Support rests at $0.0248, with $0.0238 below, while resistance sits at $0.0278, followed by the $0.030 level.

Solana (SOL)

Key points:

  • SOL was last seen near $200, down about 2.6% over the past 24 hours.

  • The MA Ribbon stayed bullishly stacked while RSI hovered near 58 and volume cooled from last week’s spike.

What you should know:

SOL pulled back after testing the $210–$213 area and hovered around $200 while staying above the MA Ribbon. The 20‑day SMA sat near $187 and the 50‑day SMA near $179, so the uptrend had remained intact as long as price held over these lines. The Relative Strength Index (RSI) eased from late‑July extremes and steadied around 58, which suggested momentum stayed positive despite the dip. Volume tapered after the push toward $210, showing softer conviction on the retreat. Away from the chart, sentiment cooled as traders digested ETF decision delays and reports of large holders sending SOL to exchanges, both of which tempered risk appetite. Support can be found at $190–$187 with $179 below, while resistance lying at $206–$213.

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