Can Bitcoin Hold $108k as Whales and ETFs Rotate Capital to ETH?

The smart money is sending a clear signal that it’s rotating out of Bitcoin and into Ethereum. While some smaller whales are still stacking sats, at least one multi-billion-dollar whale is actively dumping BTC for ETH, and the big institutional ETF flows are doing the exact same thing. With Bitcoin’s price now testing critical support, this rotation is the only story that matters right now.

The biggest tell is coming from one massive whale. a wallet holding over $5 billion has dumped $1.1 billion in BTC and swapped it straight into Ethereum on Hyperliquid in just the last 24 hours.

This isn’t a one-off trade. at Lookonchain have caught the same player making big BTC sales and ETH buys all week. When an old, influential whale starts selling this aggressively, it puts serious pressure on the entire market.

The institutional money is following the whale’s lead. U.S. spot Bitcoin ETFs are bleeding cash, with a net outflow of $751 million in August, according to SoSoValue. That breaks a four-month hot streak of inflows and shows institutional demand is drying up. It’s a classic example of the ongoing Bitcoin handover, where the new Wall Street money is proving to be less committed than the early adopters.

Meanwhile, U.S. spot Ethereum ETFs are seeing the opposite trade, pulling in over $3.87 billion in net new cash in August, with BlackRock’s ETHA leading the pack.

If you were to set aside the long-term predictions this weekend, the only chart that would matter for next week starting September is the one showing Bitcoin struggling at the $108K support level.

Earlier this week, JPMorgan analysts stated that the Bitcoin price is undervalued relative to gold and predicted that the flagship coin will hit $126k before the end of this year. According to JPMorgan’s analysts, BTC price is well positioned to rally to a new all-time high in the near future fueled by rising adoption from corporate investors implementing Bitcoin as a treasury management tool.

However, crypto analyst Ali Martinez has cautioned traders of a possible Bitcoin top akin to the 2021 reversal pattern. However, if BTC price holds above the support level around $108.3k and rebounds above $111k, the midterm bearish sentiment will be invalidated.