Ethereum giant whale wallets surged by 8%, is the altcoin rotation market starting? However, Bitcoin large holders' positions have not significantly decreased.

Recent on-chain data shows that the number of Ethereum whale wallets holding over 10,000 ETH has surged by 8% in the past two weeks, while the number of Bitcoin whales (holding over 1,000 BTC) decreased by 1.61% during the same period. Analysts have observed that whales purchased over 220,000 ETH (worth $840 million) within 48 hours, sparking speculation in the market that funds are shifting from Bitcoin to Ethereum, potentially initiating a cycle of altcoin rotation. However, a deeper analysis indicates that the rise in Ethereum may be driven by new funds, as Bitcoin on-chain data does not show signs of large-scale capital outflows. Recently, Ethereum's price increase has significantly outpaced that of Bitcoin, with institutional holdings increasing and expectations for a spot Ethereum ETF becoming a key driving force.

【Bitcoin whales' holdings decline, Ethereum whales accelerate accumulation】 The blockchain analysis platform Santiment revealed on July 29 that the movements of cryptocurrency market whales have diverged: over the past two weeks, the number of wallets holding at least 1,000 BTC has decreased by 1.61%. In stark contrast, the number of whale wallets holding at least 10,000 Ethereum has surged by 8%. This difference highlights the markedly different trends in the activities of whales for the two leading cryptocurrencies.

【Ethereum whales are massively accumulating, spending $840 million in 48 hours】 Renowned analyst Ali Martinez posted on X platform on the same day, pointing out that some top Ethereum whales have made large-scale accumulations in the last 48 hours, buying over 220,000 ETH, worth approximately $840 million at the time of purchase. Such a massive buying operation immediately ignited market discussions, speculating that this could be a signal for funds to shift from BTC to Ethereum, usually seen as an early sign of the altcoin rotation market kickoff.

[In-Depth Analysis: Funds Are Not Simply Flowing Out of Bitcoin] Despite the heightened interest from Ethereum whales, on-chain data does not support the view of large-scale funds moving directly from Bitcoin to Ethereum. An independent analysis by CryptoQuant analyst Carmelo Alemán shows no clear signs that Bitcoin holders are selling BTC to buy ETH. The key indicator of Bitcoin's realized market cap recently reached a historic high of $1.018 trillion, and this continuous growth clearly indicates that the Bitcoin space is still experiencing net capital inflows and accumulation, rather than outflows.

[New capital influx drives Ethereum market, dual giants may thrive together] Analysis by Alemán suggests that the main driver behind the current rise in Ethereum is more likely to be incremental funds from new entrants into the ecosystem, rather than the outflow of existing funds from Bitcoin. Current signs indicate that both Bitcoin and Ethereum seem to be benefiting from an overall increase in market attention and interest, and the two are not competing for the same pool of liquidity, but rather may be exhibiting a pattern of shared prosperity.

[Ethereum's recent performance has crushed Bitcoin, with institutional demand surging] As of the time of writing, the trading price of Ethereum is reported at $3805, having surged 52% in the past 30 days and increased 2% in the past week. In contrast, Bitcoin's monthly increase is 9%, and its weekly increase is only 0.6%, currently priced at $117,966. Despite Bitcoin continuing to attract massive institutional inflows due to its spot ETF, the inflow growth rate for Ethereum has been even more rapid recently. Notably, the trend of corporate treasuries increasing their holdings of Ethereum has recently accelerated significantly, combined with the market's ongoing optimistic expectations for the upcoming spot Ethereum ETF. These key factors are expected to further boost the value of ETH in the coming months.

Conclusion: The surge in Ethereum whale wallets coupled with the influx of new capital, along with the rising expectations for the approval of a spot Ethereum ETF, is strongly supporting its price performance, with short-term gains significantly outpacing Bitcoin. While the market is buzzing about the narrative of "Bitcoin rotating into Ethereum," on-chain data has not confirmed a large-scale outflow of Bitcoin funds. The current crypto market may be displaying a dual mainline parallel pattern, with incremental capital entering simultaneously benefiting the two leading assets. Investors need to closely monitor whale movements, changes in institutional holdings, and the progress of the Ethereum ETF to seize potential altcoin rotation opportunities.