As selling pressure swept across the market, Bitcoin — the largest cryptocurrency by market cap — emerged once again as a “safe haven.” Many whales and retail investors panicked, rotating ETH into BTC or closing leveraged positions at a loss.
Profits Vanish After Market Shock
Ethereum had outperformed Bitcoin over the past three months. However, recent market actions suggest that this phase may be fading.
One striking case was a whale on Hyperliquid who lost $6.22 million in the crash. This trader had turned $125K into $7 million, even peaking at $43 million, but after liquidation, net profits shrank to just $771K.
According to Lookonchain data, another whale swapped 3,900 ETH (worth $16.26 million) for 143.26 WBTC at a rate of 0.03673 — signaling a rotation of capital into Bitcoin. Historically, ETH/BTC dumps alongside capital rotation have often preceded the end of altcoin season. But will that pattern hold true this time?
The Twist: ETH/BTC Ratio Remains Resilient
Despite outflows, the ETH/BTC pair stayed firm at 0.037, well above its 0.033 support. Its recent peak at 0.039 even hinted at a potential climb toward 0.040.
This pullback may explain liquidations and capital shifts, but since April’s 0.025 low, ETH/BTC has consistently posted higher highs and higher lows, maintaining a bullish structure. This suggests the altcoin season may not be over — especially as institutional activity remains divided.
Institutions Split on Ethereum
Data from Arkham revealed that giants such as BlackRock, Fidelity, and Grayscale sold ETH on Coinbase, ending a buying streak that began earlier this year and accelerated in April. Institutions often sell at higher levels, pushing prices lower, only to buy back at cheaper valuations — shaking out weak hands.
On the flip side, some institutions are still accumulating. Two institutional wallets recently withdrew $38 million worth of ETH from FalconX.
CryptoQuant data further highlights this divergence: retail holdings have dropped to 8.6 million ETH, while large investors’ holdings have climbed to 10.8 million ETH.
Clearly, institutional selling has injected caution into the market. Yet, for Ethereum to confirm a cycle break, it would need to lose its bullish structure on higher timeframes.
