The cryptocurrency market is showing mixed signals from its largest investors. Recently, a newly created wallet executed a strong accumulation of Ethereum, buying $32 million worth of ETH. This move suggests growing institutional interest. However, it contrasts sharply with Solana and Bitcoin whales who are withdrawing capital. The information regarding the ETH purchase comes from Arkham data.
The purchase was made on the OKX exchange at an average price of $3,824 per ETH. This move is not isolated. It follows recent announcements from companies like SharpLink and Bitmine Immersion Technologies. These firms accumulated 203,826 and 19,271 ETH respectively last week. Jamie Elkaleh, CMO of Bitget Wallet, suggested the new whale’s purchase is likely driven by digital asset treasury inflows. Elkaleh added that this has “boosted institutional interest and liquidity.”
Market Divergence: ETH Attracts Capital, Solana Sees it Leave
While Ethereum attracts capital from whales and corporations, Solana is experiencing significant distribution. A whale that acquired SOL four years ago has transferred 515,000 SOL (valued at $93 million) to Binance over the last four months. The on-chain analytics account EmberCN reported this movement. The address still holds 828,000 SOL, valued at $150 million.
According to Elkaleh, this massive sell-off in Solana “implies a market preference for Ethereum ecosystem cryptocurrencies.” It also suggests “decreased whale confidence” in SOL. Concerns about scalability or competition could be influencing this decision. Interestingly, this institutional interest in ETH contrasts with ETF flows. Ethereum ETFs saw net outflows of $22.80 million, while Bitcoin ETFs attracted $335.43 million, according to SoSoValue.
Do These Moves Indicate a Bottom for Bitcoin and a Top for Solana?
In the Bitcoin market, whale activity is also notable, but with a different focus. A whale recently closed a 1,107 BTC short position just one day after opening it. This trade generated a quick profit of $835,000, according to the analytics platform Hyperdash. This particular trader maintains a 100% success rate in their last seven trades.
Elkaleh interprets the closing of this short position as a positive sign for Bitcoin. He stated that the leading cryptocurrency is entering an undervalued zone. This could hint at a “possible bottom if supported by a broader market recovery.”
The strong accumulation of Ethereum by large institutional players paints a bullish picture for the asset. Nonetheless, the overall market remains divided. Profit-taking in Solana and short-term speculative trades in Bitcoin show that caution persists. Investors are watching to see if the preference for Ethereum will solidify against the outflows seen in ETF products.
