Smart Money Behavior Diverges Between Bitcoin and Ethereum

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Smart Money Behavior Diverges Between Bitcoin and Ethereum

A subtle but important shift is taking place beneath the surface of the crypto market.

After months of steady distribution, long-term Bitcoin holders appear to be stepping back from selling, while large Ethereum investors are quietly doing the opposite—adding exposure at a measured but persistent pace.

Key takeaways:

  • Long-term Bitcoin holders have paused selling for the first time in roughly six months
  • Ether whales are actively accumulating, increasing their share of total ETH supply
  • Onchain data suggests diverging behavior between BTC and ETH investors
  • Short-term sentiment remains cautious, especially among US-based traders

Bitcoin Selling Pressure Begins to Ease

Data tracking wallets that have held Bitcoin for more than 155 days shows that a prolonged period of distribution may be ending. Since mid-summer, long-term holders gradually reduced their combined balances by roughly half a million coins. That trend has now stalled.

Market observers note that this is the first clear pause in long-term selling since July. Historically, such slowdowns in distribution often precede periods of consolidation or relief rallies, as a key source of structural supply pressure fades—even if broader market volatility remains elevated.

Ethereum Whales Move in the Opposite Direction

While Bitcoin selling pressure cools, Ethereum is seeing renewed interest from large holders. Onchain data indicates that wallets holding at least 1,000 ETH have added roughly 120,000 Ether over the past week, steadily increasing their dominance.

Addresses of that size now control close to 70% of the total Ethereum supply, a share that has been trending higher since late 2024. Accumulation at this scale typically reflects long-term positioning rather than short-term speculation, especially when it occurs during uncertain or range-bound markets.

Price Action Reflects a Cautious Rebalance

Market prices mirror this transitional phase. Bitcoin is trading near $87,750, posting modest gains on the day while remaining slightly lower on the week. The price action suggests stability rather than momentum, with BTC holding above key support levels but struggling to break higher decisively.

Ethereum is trading around $2,975, outperforming Bitcoin on the day with a stronger short-term rebound, even as it remains marginally lower over longer timeframes. Trading volumes for both assets remain elevated, indicating active participation despite lingering uncertainty.

Volatility, FUD, and Mixed Signals

Recent price swings around the Christmas period were accompanied by a spike in fear, uncertainty, and doubt—a pattern often seen near short-term inflection points. As Bitcoin briefly pushed higher, sentiment deteriorated, only for caution to return once prices pulled back.

Adding to the mixed backdrop, the Coinbase Premium Index has stayed in negative territory, signaling ongoing selling pressure from US-based traders. A negative premium typically reflects reduced risk appetite and net distribution on US spot markets, even as other regions show more balanced flows.

A Market in Transition

Taken together, the data points to transition rather than resolution. Long-term Bitcoin holders are no longer aggressively selling, easing one major source of supply. At the same time, Ethereum whales are quietly positioning, suggesting growing confidence beneath the surface.

Short-term traders remain hesitant, and US-led selling continues to cap upside momentum. Still, the pause in Bitcoin distribution and steady Ethereum accumulation hint that larger players may already be preparing for the next phase of the cycle—even if price action has yet to fully reflect it.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

Source: https://coindoo.com/smart-money-behavior-diverges-between-bitcoin-and-ethereum/