Whale movement sudden change: All ETH held for years converted to WBTC, what signals is the market sending?

A long-term ETH holder whale suddenly made a significant adjustment to their asset allocation. According to on-chain analyst Yu Yan’s monitoring, this “diamond hand” whale, who has held ETH firmly for years, has exchanged all 22,344 ETH for 774.1 WBTC, with an average swap price of approximately $90,505. This move occurred during a period of clear capital flow divergence in the crypto market, sparking a new round of reflection on the relative attractiveness of BTC and ETH.

Diamond Hand’s Rebalancing Choice

This rebalancing involved a substantial scale. Based on current market prices, 774.1 WBTC is worth over $70 million, while the value of 22,344 ETH depends on the specific price at the time of the swap. The whale’s chosen average swap price of $90,505, compared to WBTC’s current price of $91,119.68, shows only a difference of about $600, indicating that this transaction was completed recently.

From the perspective of holdings, the “diamond hand” identity of this whale means they have steadfastly held ETH through both bear and bull markets over the past years. Such long-term holders usually do not change their strategy easily. The sudden rebalancing into WBTC suggests a significant shift in their judgment of the current market situation and asset prospects.

Market Signals Behind the Rebalancing

Changes in Capital Flows

According to the latest news, the capital flows of Bitcoin and Ethereum are showing clear divergence. Data from January 2nd indicates that Bitcoin ETFs experienced a net outflow of 2,061 BTC in a single day, while Ethereum ETFs saw a net inflow of 12,930 ETH. While ETH appears more popular, this whale’s choice is opposite, possibly reflecting differing judgments between institutions and retail investors.

Price and Timing Considerations

The average holding price of WBTC is $90,505, and the current price is $91,119.68, meaning the whale completed the rebalancing at a relatively high level. This choice may be based on the following considerations:

• BTC has stronger support at the current price level
• WBTC, as a BTC representation within the Ethereum ecosystem, has unique liquidity advantages
• Compared to directly holding BTC, WBTC has more application scenarios within DeFi ecosystems

Shift in Market Sentiment

The rebalancing actions of long-term ETH holders may indicate a reassessment of the relative value of the two assets by market participants. This does not necessarily mean a bearish outlook on ETH but could reflect a rebalancing of risk and reward in the current market environment.

Other Market Signals

This whale rebalancing is not an isolated event. Recently, BlackRock deposited 1,134 BTC and 7,255 ETH into Coinbase, indicating that large institutions are still adjusting their positions. Meanwhile, other large fund inflows and outflows have also appeared in the market, reflecting current market uncertainty and institutional caution.

Potential Future Impact

Such significant asset reallocation by whales often influences market psychology. If more long-term holders follow similar rebalancing strategies, it could strengthen the upward momentum of BTC relative to ETH. However, Ethereum ETFs are still absorbing funds, indicating that institutional investors’ interest in ETH has not waned, and the competition between the two assets may continue to unfold.

Summary

The complete rebalancing action of this diamond hand whale shows that even the most steadfast long-term holders will adjust their strategies based on market changes. Currently, capital flows of BTC and ETH are diverging, with major participants reassessing the relative attractiveness of both assets. This signal warrants attention, but it remains to be seen whether more institutions will follow similar moves, which could indicate a new market trend or be an isolated choice. Future focus should be on whether BTC can hold above $90,000 and whether ETH can maintain continuous net inflows from institutions.