Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

After setting a new all-time high of $124,500, Bitcoin is now battling to hold the $115,000 level as support. The bulls, who dominated just days ago, are struggling to spark a fresh rally, leaving the market in a delicate phase. While fundamentals such as institutional adoption and strong holder demand continue to support the broader uptrend, capital flows suggest a new dynamic is at play.

Several analysts note signs of capital rotation from Bitcoin into altcoins, a pattern that often marks transitions between phases of the market cycle. Ethereum, in particular, is emerging as a major destination for this shift.

Adding to the intrigue, on-chain intelligence firm Lookonchain has been tracking the movements of a long-dormant Bitcoin OG whale, who has reawakened with extraordinary activity. On Friday, the whale deposited 300 BTC ($34.86 million) into Hyperliquid to sell for Ethereum. His bold strategy is paying off: he’s now sitting on over $100 million in unrealized profits.

The whale currently holds a 135,265 ETH ($581M) long position at a $4,295 average entry, up $58 million, and also accumulated 122,226 ETH ($535M) spot at a $4,377 average, up $42 million. This aggressive rotation underscores a pivotal moment—one where Bitcoin consolidates, but altcoins, led by Ethereum, may capture the spotlight.

Bitcoin OG’s Bold Rotation Into Ethereum

According to Lookonchain, the mysterious Bitcoin OG whale continues to dominate market headlines with aggressive on-chain moves. Most recently, he transferred another 4,000 BTC (~$460 million) into exchanges, where the funds were converted into Ethereum. This marks yet another large-scale repositioning that has captured the attention of analysts and investors alike.

So far, the whale has accumulated a staggering 179,448 ETH (~$806 million) at an average price of $4,490, alongside a 135,265 ETH ($581 million) long position that remains open. These bold allocations underscore a decisive rotation strategy away from Bitcoin and into Ethereum, suggesting a bet on ETH’s outperformance in the coming phase of the cycle.

The implications are significant. On one hand, such a massive capital shift highlights growing institutional-style conviction in Ethereum as it pushes through all-time highs and challenges Bitcoin’s dominance. On the other hand, it raises concerns about short-term volatility.

Analysts warn that despite the bullish outlook, a shakeout may occur before sustained gains materialize. With leverage in derivatives markets climbing and liquidity thinning in spot trading, sharp pullbacks could easily flush out overextended positions.

Bitcoin Vs. Ethereum: Weekly Chart Analysis

The ETH/BTC weekly chart shows Ethereum gaining significant ground against Bitcoin after a long downtrend that lasted from mid-2022 to early 2025. ETH has now rallied to the 0.041 BTC level, posting strong bullish candles and reclaiming key moving averages. The 50-week SMA (blue) has just been broken to the upside, and price is testing the 100-week SMA (green), an important resistance zone. If ETH manages to sustain momentum above this level, the next key target lies near the 200-week SMA (red) around 0.055 BTC.

This rotation is especially important because ETH has been underperforming Bitcoin for over two years. The recent surge signals a potential capital rotation from BTC into ETH, a trend reinforced by large institutional buys and whales shifting positions into Ethereum.

On the downside, if ETH/BTC faces rejection at the current resistance, the pair could retest support around 0.035 BTC, which aligns with previous consolidation. However, momentum indicators suggest strength is currently with Ethereum.

Featured image from Dall-E, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

As crypto prices see a new rebound with Bitcoin (BTC) leading the pack, US investors are not only anticipating significant returns on BTC and other digital assets but also facing increased scrutiny from the Internal Revenue Service (IRS). 

Recent reports indicate that the Internal Revenue Service has dispatched a wave of warning letters to crypto investors, raising alarms about the accuracy of the information they provided on their tax returns.

Crypto Tax Inquiries Skyrocket

In the past two months, the number of these warning letters has spiked, signaling a renewed focus on digital asset reporting. Crypto tax experts have noted that this uptick is markedly higher than in previous years. 

David Kemmerer, co-founder and CEO of CoinLedger, reported a dramatic increase in support inquiries related to IRS communications. From May to June, conversations on CoinLedger about “IRS letters” surged to nearly 800, a ninefold increase compared to the same timeframe in 2024.

Kemmerer explained, “Thousands of investors are getting these letters. Naturally, when that happens, we see a flood of customers coming to us asking, ‘What do I do?’” 

This sentiment is echoed by two crypto tax attorneys, Jordan Bass and Andrew Gordon, who have also observed a noticeable rise in inquiries regarding these IRS notifications. 

Bass mentioned that his firm received inquiries from at least ten recipients of the letters in the last two months, a significant increase from the previous year when no inquiries were reported.

IRS Warning Letters

The IRS has a history of intensifying its efforts to ensure compliance among cryptocurrency investors. Following the agency’s acquisition of thousands of customer records from Coinbase in 2017, it implemented a series of “voluntary compliance” letters aimed at encouraging accurate reporting among investors. 

The latest notices inform recipients that the Internal Revenue Service possesses information indicating they hold “one or more accounts containing virtual currency.” 

While some letters advise recipients to review their reporting for accuracy, others require a response, either through amended returns or explanations justifying their reported transactions.

Interestingly, Gordon noted a potential commonality among recent recipients of the letters, many of whom had accounts on the Seychelles-based crypto exchange Poloniex, raising questions about the data the IRS may have accessed to trigger these communications.

Kemmerer speculated that the increased outreach from the IRS typically follows the agency acquiring new data, suggesting that the notices might be part of broader enforcement efforts. “I’m sure there are just people randomly getting selected, and the lucky ones get these scary letters,” he said.

Featured image from DALL-E, chart from TradingView.com 

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Franklin Templeton, one of the world’s largest asset management firms, has submitted a proposal to the United States Securities and Exchange Commission (SEC) to issue a spot Solana ETF (exchange-traded fund). The asset manager joins several other applicants in the race to offer a SOL-based investment product to US investors.

Franklin Templeton To Offer Staking In Spot Solana ETF

On Friday, February 21, Franklin Templeton filed for an exchange-traded product that will track the spot price of the fifth-largest cryptocurrency Solana. Franklin Templeton’s Solana ETF will be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company, LLC serving as custodian.

The firm’s registration statement read:

The Franklin Solana Trust (the “Trust”) is organized as a Delaware statutory trust. The Franklin Solana ETF series of the Trust (the “Fund”) issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Fund consist primarily of Solana held by a custodian on behalf of the Fund. The Fund seeks to reflect generally the performance of the price of Solana. The Fund seeks to reflect such performance before payment of the Fund’s expenses.

In its filing with the SEC, Franklin Templeton revealed that it may occasionally stake a portion of the ETF’s assets through one or more trusted staking providers. According to the firm, the “Fund” would receive Solana tokens as rewards (which would also be treated as “income to the Fund”) for engaging in any staking activity.

Source: Sec.gov

This spot Solana ETF would join the Bitcoin and Ethereum exchange-traded funds in Franklin Templeton’s growing list of crypto products in the United States. Earlier this week, the asset manager launched its combined ETH and BTC ETF after receiving SEC approval in December 2024.

Franklin Templeton’s proposal to offer the staking option in its spot Solana ETF is not exactly novel, as multiple issuers have considered this in other crypto products. For instance, the New York Stock Exchange filed for staking on Grayscale’s Ethereum ETFs, while Cboe BZX Exchange is looking to offer staking on 21Shares’ Ethereum fund.

With the digital asset regulatory landscape improving in the United States, it is no surprise to see more traditional firms file for new crypto-based financial products. The growing clarity in the US crypto space was spotlighted by the SEC’s decision to drop its case against Coinbase.

Solana Price Overview

The price of SOL barely reacted to the news of Franklin Templeton’s spot Solana ETF filing. As of this writing, the Solana price stands at around $170, reflecting a 2% decline in the past 24 hours.

The price of SOL on the daily timeframe | Source: SOLUSDT chart on TradingView

Featured image from Aivaras Sakurovas | Dreamstime.com, chart from TradingView

In a post on X published yesterday, Jeff Park, Head of Alpha Strategies at Bitwise, stated that Bitcoin (BTC) currently presents a “generational opportunity” amid intensifying global macroeconomic turmoil. 

Park pointed to factors such as US President Donald Trump’s proposed trade tariffs, concerns over the US debt ceiling, and the growing sentiment of deglobalization as key contributors to the current economic uncertainty.

Bitcoin Reigns Supreme Amid Global Political And Economic Turmoil

The year 2025 has started on an unstable footing, marked by rising global economic and political instability due to trade tariffs, US debt ceiling issues, and the broader push toward deglobalization. These factors could significantly impact financial markets and geopolitical stability.

Related Reading

Adding to the uncertainty is the impending expiration of the US Tax Cuts and Jobs Act (TCJA) later this year, which could lead to unprecedented tax policy shifts and heightened economic unpredictability.

Park also underscored the “gold run tail risk,” referencing gold’s extreme price volatility during periods of financial distress. At the time of writing, gold is trading at $2,900 per ounce, up significantly from around $2,585 in December 2024.

Despite these mounting risks, Bitcoin has remained resilient, maintaining a price range between $90,000 and $100,000. Park highlighted BTC’s implied volatility (IV) percentile – a measure that reflects how its current volatility compares to historical levels.

He noted that BTC’s IV percentile is at its lowest level of the year, reinforcing his view that Bitcoin presents a “generational opportunity.” Echoing this sentiment, Bitwise CEO Hunter Horsley remarked that many are underestimating “the massive leaps Bitcoin is going to take into the mainstream this year.”

Indeed, Bitcoin continues to gain mainstream traction and demonstrate resilience amid rising global economic uncertainty. For example, BTC remained largely unaffected by the tech market sell-off triggered by the release of the Chinese AI model DeepSeek.

No Altseason Anytime Soon?

As Bitcoin strengthens its dominance, the altcoin market has struggled, weighed down by thin liquidity and waning retail interest. One key indicator supporting this trend is Bitcoin dominance (BTC.D), which measures BTC’s market cap relative to the total cryptocurrency market.

Related Reading

The weekly BTC.D chart shows a strong rebound from around 54% in December 2024. At the time of writing, BTC.D stands at 60.65%, a level not seen since March 2021.

That said, some analysts remain optimistic about a potential Ethereum-led (ETH) altseason later in 2025. Recent analysis by Titan of Crypto suggests that Ethereum is poised for a major upward move this year.

The analyst also pointed out similarities between ETH’s current price action and BTC’s behavior during its third market cycle, implying that Ethereum may soon enter what he calls its “most hated rally.” At press time, BTC trades at $95,362, down 0.4% in the past 24 hours.

Featured image from Unsplash, Charts from X.com and Tradingview.com