Bitcoin is currently taking a back seat as Ethereum captures investor attention. The leading cryptocurrency dipped below $112,000 this Monday. It even briefly touched below $111,000 before a small recovery. Over the past month, Bitcoin has lost 5% of its value. Meanwhile, Ethereum has soared, gaining more than 24%.
Last Friday, Bitcoin saw a brief moment of strength, climbing above $117,000. This jump followed encouraging remarks from Federal Reserve Chairman Jerome Powell. He hinted at possible interest rate cuts coming in September. But that momentum did not last. On Monday morning, Eastern time, Bitcoin’s price fell to a low of $110,956. Even with a slight bounce back, Bitcoin is still down 3% in the last 24 hours. Its current price sits at $111,617, which is 10% below its all-time high of $124,000, according to data from CoinGecko.
Ethereum, on the other hand, has been riding a different wave. The second-largest cryptocurrency hit a new record high of $4,950 over the weekend. This surge was fueled by general market optimism after Powell’s speech. Ethereum’s strong performance shows a clear shift in the market. In the past 30 days, Ethereum has climbed 24.3%. This stands in sharp contrast to Bitcoin’s more than 5% drop in the same period.
Big Investors Shift to Ethereum
Bitcoin’s recent price drop has happened at the same time big investors, often called “whales,” are moving their money into Ethereum. Many financial experts point to this migration as a key reason for Bitcoin’s fall. They see it as a significant market change.
Last week, one large whale sold over 24,000 Bitcoins. They then put that money directly into Ethereum. Jacob King, CEO of WhaleWire, told The Block about this major move. These funds, worth billions, turned into about $2 billion in spot ETH purchases. Another $1.3 billion went into Ethereum staking, as reported on social media platform X. King explained that when this whale started selling, it caused a wave of panic. Other traders also began selling, which made Bitcoin’s price fall even faster.
Another report noted a different whale, holding over $11 billion in Bitcoin, sold 22,769 BTC last week. This sale was worth $2.59 billion. These funds were then moved into 472,920 ETH, valued at $2.2 billion. This whale also took a $577 million long position on Ethereum perpetuals on the Hyperliquid platform. On Monday, this same whale closed a $450 million long position. They did this at an average price of $4,735, pocketing a profit of $33 million. They also bought an extra $108 million in spot ETH. According to Lookonchain, this whale still holds a long position of 40,212 ETH, worth $184 million, with an unrealized profit of over $11 million.
Vincent Liu, Chief Investment Officer at Kronos Research, told The Block that it is tough to blame Bitcoin’s price drop on just one actor. He thinks it is more likely that many whales or a large exchange with big holdings caused the shift, rather than a single entity.
Despite different views on who caused the dip, the trend of moving money towards Ethereum is clear. Official data backs this up. US spot Ethereum exchange-traded funds (ETFs) have seen record inflows, totaling over $8 billion since July. This number easily beats Bitcoin ETFs, which have shown weaker inflows or even money flowing out, according to SoSoValue data.
Ethereum Gains Ground as Risk Appetite Grows
Bitcoin’s share of the overall crypto market has dropped. It fell from 61% to 57.94% this month, according to The Block. This shows a growing interest in other cryptocurrencies, especially Ethereum.
Gracy Chen, CEO of the Bitget exchange, shared her thoughts with Cointelegraph. She said, “Ethereum’s rally past $4,300 points to strong demand in its ecosystem and the possible start of an altcoin season.” Chen believes Bitcoin might stay in a range between $110,000 and $120,000 for the next two weeks. However, she sees Ethereum possibly hitting between $4,600 and $5,200. Analysts at Standard Chartered bank recently updated their Ethereum price prediction. They now expect it to reach $7,500 by the end of the year and $25,000 by 2028.
Powell’s comments at the Jackson Hole symposium last Friday were a big reason for investors to feel more daring. “On-chain data shows capital continuously rotating. Whales are selling Bitcoin to increase their exposure to Ethereum. This is speeding up ETH’s momentum,” Chen explained.
What’s Next for the Crypto Market?
In the short to medium term, experts predict more ups and downs in the crypto market. Investors are closely watching key economic data, like the US jobless claims due out on Thursday.
Nick Ruck, Director at LVRG Research, called Bitcoin’s recent fall a “market reset.” He believes it’s happening because of ongoing economic worries, as reported by The Block. On the flip side, the expected approval of staking for Ethereum ETFs could further boost staking activity and the performance of other altcoins, according to Liu.
While Bitcoin faces selling pressure, Ethereum seems to be capturing the attention of both big and small investors. It is solidifying its spot as a strong alternative in the crypto world. The back-and-forth between these two major cryptocurrencies will remain a key focus for traders in the coming weeks.
As of this writing, Ethereum is trading at $4,654. It has seen a 2.4% dip in the last 24 hours.