Bitcoin Whales Trigger Faster Market Response Than Ethereum Counterparts

A recent working paper from the Federal Reserve Bank of Philadelphia found that public notifications of large crypto transfers, or 'whale signals', have a significantly different impact on Bitcoin and Ethereum traders.

The study analyzed data from over 6,600 BTC and 5,075 ETH whale transactions through the end of 2025. It showed that non-whale Bitcoin wallets became active and traded in the alerted whale's direction most strongly during the first 15 minutes after an alert, with small and medium wallet groups seeing increases of up to 23.72 percentage points.

In contrast, Ethereum participation remained relatively stable across all wallet groups, except for the largest seller cohort which showed a significant same-direction response. The study also found that large Ethereum-network transfers tended to occur during periods of declining volatility, with realized Ethereum volatility actually decreasing after alerts.

The authors attribute the difference in market structure between Bitcoin and Ethereum, suggesting that Ethereum's activity often runs through exchanges, smart contracts, and layer-2 venues where many user transactions can be aggregated into larger balance transfers. The study does not imply causation but rather observes patterns in wallet activity and volatility around public alerts.