Bitcoin Traders Follow Whale Signals Faster Than Ethereum Users

A recent working paper from the Federal Reserve Bank of Philadelphia has shed new light on the behavior of Bitcoin and Ethereum traders in response to large crypto transfers.

The study, which analyzed data through the end of 2025, found that non-whale Bitcoin wallets became active and traded in the direction of alerted whales most strongly within the first 15 minutes after notification. This was particularly pronounced among small and medium wallet groups, with buy participation increasing by up to 23.72 percentage points.

In contrast, Ethereum participation remained relatively stable across all wallet groups, with only a slight increase in same-direction activity among large non-whale wallets after whale sells.

The study also found that the volatility of Bitcoin was temporarily increased by whale alerts, while Ethereum realized volatility actually decreased following alerts. The authors attribute this difference to market structure, suggesting that Ethereum's activity is often aggregated through exchanges and smart contracts.