Large cryptocurrency holders have withdrawn significant amounts of Bitcoin and Ethereum from exchanges in recent weeks while increasing their trading activity, according to blockchain analytics data. Bitcoin transactions exceeding $1 million reached a two-month high of 6,311 in late October, while Chicago Mercantile Exchange Ethereum futures contracts climbed to a record 2.25 million in open interest.
What to Know:
- Bitcoin whale transactions above $1 million hit 6,311, the highest level since late August, as exchange reserves continued declining through October
- CME Ethereum futures open interest reached an all-time high above 2.25 million contracts, signaling growing institutional participation in derivatives markets
- Ethereum reserves across exchanges dropped by approximately 1 million coins since late September, while addresses holding more than 1,000 ETH increased
Bitcoin Network Records Two-Month Peak in Large Transactions
The Bitcoin network processed 6,311 transactions valued at more than $1 million each between Oct. 26 and Oct. 28, marking the highest concentration of whale activity since late August. Crypto analyst Ali Martinez posted the data on social media platform X, noting the surge coincided with Bitcoin's price movement from around $106,000 to a local peak of $116,000.
Bitcoin traded at $110,700 as of Wednesday afternoon, down 2% over 24 hours but showing marginal weekly gains. The asset had dropped below $108,000 following a Federal Reserve rate cut announced last week, a move that typically influences risk asset pricing.
Exchange flow data from CryptoQuant showed net negative Bitcoin transfers throughout October.
More coins left exchanges than entered them during this period. Such patterns often indicate holders moving assets into cold storage wallets, a behavior associated with longer-term holding strategies rather than active trading.
The withdrawal trend combined with increased large transactions suggests some investors repositioned their holdings ahead of the year's final months. While exchange outflows don't guarantee price direction, they reduce immediately available supply on trading platforms.
Institutional Interest Pushes Ethereum Derivatives to Records
Ethereum futures contracts on the CME reached unprecedented levels in late October. Open interest surpassed 2.25 million contracts, according to CryptoQuant data shared by analyst Crypto Rover. The contracts span various expiration dates, with most concentrated in the one-to-six-month range.
This derivatives growth occurred as Ethereum recovered from price levels below $1,400 earlier in the year.
The asset peaked at $4,950 in 2025 before retreating to current levels around $3,900, reflecting a 3% daily decline but a 2% weekly increase.
Separate data from blockchain analytics firm Alphractal documented a rise in Ethereum addresses holding at least 1,000 ETH. These wallets, which control substantial value, became more active in recent weeks. CryptoQuant separately reported that total Ethereum reserves across centralized exchanges fell by roughly 1 million coins since late September.
The combination of rising futures positions and declining exchange balances points to shifting market structure.
Institutional portfolios have increased Ethereum exposure faster than Bitcoin over the past year, according to earlier CryptoPotato reporting. Futures markets provide regulated venues for institutions to gain price exposure without directly holding the underlying asset, though they can also amplify volatility through leveraged positions.
Exchange reserve declines mirror patterns seen in Bitcoin markets. When large holders remove assets from trading platforms, it typically signals confidence in holding through short-term price fluctuations. However, these metrics don't capture off-exchange trading or over-the-counter transactions, which institutional investors often prefer.
Market Implications and Context
The recent activity in both Bitcoin and Ethereum markets reflects broader cryptocurrency sector dynamics as the year approaches its end. Whale transactions and institutional derivatives positioning offer insight into how sophisticated market participants view current price levels, though they don't guarantee future direction.
Bitcoin and Ethereum continue to dominate cryptocurrency market capitalization and trading volume. Their combined movements often set the tone for smaller digital assets, making whale behavior in these markets particularly significant for overall sector sentiment. The Federal Reserve's recent monetary policy decision and ongoing regulatory developments in major markets will likely continue influencing how institutional participants approach digital asset exposure in coming months.
Closing Thoughts
Bitcoin and Ethereum markets showed increased activity from large holders in late October, with significant withdrawals from exchanges and record institutional futures positioning. While these metrics suggest accumulation behavior, the assets remain sensitive to macroeconomic policy shifts and broader market conditions.