In 2025, the cryptocurrency market is witnessing a significant shift as analysts predict a “natural rotation” from Bitcoin to Ether (ETH) and other altcoins. This trend is primarily driven by large investors, commonly referred to as cryptocurrency whales, who are making substantial purchases of Ether, signaling a potential change in market dynamics.
Recent data from blockchain analytics platform Arkham revealed that nine major whale addresses collectively acquired $456 million worth of Ether from Bitgo and Galaxy Digital. Nicolai Sondergaard, a research analyst at the crypto intelligence platform Nansen, emphasized that this surge in whale activity indicates an organic shift in investor focus toward altcoins that offer greater upside potential.
“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,”
Sondergaard stated in an interview with Cointelegraph. He further noted that while the movements of Ether whales are significant, the broader trend reflects a diversification of investment flows beyond Bitcoin as market participants seek the next lucrative opportunity.
Supporting this observation, renowned crypto analyst Willy Woo highlighted the increasing capital rotation from Bitcoin to Ether. He noted that inflows into Ether, currently at approximately $900 million per day, are nearing those of Bitcoin, which reflects a growing interest in Ether among investors. This shift began when Tom Lee’s ETH treasury company, BitMine, commenced its accumulation of Ether.
Interestingly, this trend follows a notable event where a Bitcoin whale, valued at over $11 billion, sold $2.59 billion worth of Bitcoin. The funds were subsequently rotated into a $2.2 billion purchase of spot Ether and a $577 million Ether perpetual long position on the decentralized exchange Hyperliquid, as reported by Cointelegraph.
The current climate is fostering optimism among investors, particularly as the industry’s most successful traders, categorized as “smart money” on Nansen’s platform, are increasingly allocating their resources toward altcoins. Data indicates that these traders have invested significantly in various large-cap tokens, including:
- $1.2 million in Chainlink (LINK)
- $967,000 in Ethena (ENA)
- $614,000 in Lido DAO (LDO)
This growing interest in Chainlink may be prompted by Bitwise Asset Management’s recent filing to launch a LINK-based exchange-traded fund with the US Securities and Exchange Commission.
Despite these altcoin acquisitions, they are relatively modest compared to a dormant whale that recently acquired $28 million in Ether after being inactive since 2021. This substantial purchase underscores the evolving landscape of cryptocurrency investment as we progress through 2025.
As the market moves toward what many experts are calling an “altcoin season,” the implications for investors are profound. With the rules of engagement in the cryptocurrency market changing, participants are encouraged to stay informed and adaptable to capitalize on emerging opportunities.
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Source: Cointelegraph
