Bitcoin trades at a key juncture as Arthur Hayes rotates greater than $3 million out of Ethereum and into DeFi, signalling a tactical shift tied to liquidity expectations reasonably than risk-off sentiment. On-chain knowledge confirms deliberate reallocations into yield-focused tokens as ETH stalls beneath resistance.
The transfer highlights a broader market dynamic the place capital is rotating inside crypto, shaping near-term Bitcoin and altcoin value trajectories.
Arthur Hayes Shifts $3M From Ethereum to DeFi as Charts Sign Rotation
A notable shift is unfolding in Arthur Hayes’s portfolio, as on-chain knowledge confirms an energetic rotation away from Ethereum and into choose decentralized finance tokens. The transfer follows Hayes’ public feedback on December 20, the place he flagged bettering world liquidity situations and hinted at tactical repositioning reasonably than broad threat discount.
We’re rotating out of $ETH and into high-quality DeFi names, which we imagine can outperform as fiat liquidity improves.
— Arthur Hayes (@CryptoHayes) December 20, 2025
Knowledge shared by Lookonchain reveals this was not symbolic. Greater than 1,100 ETH was moved and redeployed, marking a capital-backed technique shift involving a number of million {dollars}.
Arthur Hayes(@CryptoHayes) simply transferred one other 680 $ETH($2.03M) to promote and rotate into high-quality DFi tokens.https://t.co/jifQkMFtiO pic.twitter.com/xYIW9o7xSK
— Lookonchain (@lookonchain) December 20, 2025
Ethereum Turns into the Funding Asset
Hayes hasn’t deserted Ethereum as a long-term asset. As an alternative, the rotation suggests ETH is getting used as a funding layer whereas capital is redirected towards higher-beta alternatives inside DeFi.
Between December 19 and 20, Hayes transferred ETH to exchanges and market-making venues, the place it was promptly transformed into DeFi publicity. The velocity and dimension of the transactions level to deliberate execution reasonably than portfolio testing or hedging. This framing issues. Hayes is rotating inside crypto threat, not stepping away from it.
Ethena, Pendle, and ether.fi in Focus
The biggest allocation has gone to Ethena (ENA), the place Hayes added roughly 1.22 million tokens in a single session, bringing his whole holdings above 6 million ENA. He has additionally gathered Pendle (PENDLE) and ether.fi (ETHFI), each tied to yield tokenization and liquid restaking.
Arthur Hayes(@CryptoHayes) simply purchased 1.22M $ENA($257.5K) 30 minutes in the past.https://t.co/loeYKUb9rNhttps://t.co/3j5DkVtzD1 pic.twitter.com/ft4csng5e9
— Lookonchain (@lookonchain) December 20, 2025
Collectively, these positions align with Hayes’ long-standing thesis that liquidity-sensitive protocols are likely to outperform throughout early easing cycles.
Ethereum Worth Prediction – Technical Alerts Reinforce the Shift
The rotation additionally aligns with Ethereum’s present technical posture. ETH has been buying and selling inside a descending channel on the 4-hour chart, repeatedly failing to reclaim the $3,100–$3,150 resistance zone.
Momentum indicators recommend stabilization reasonably than power, with the RSI hovering in impartial territory and the worth consolidating beneath key shifting averages.

Against this, a number of DeFi tokens have already damaged short-term downtrends or reclaimed important EMAs, suggesting relative power versus ETH. From a dealer’s perspective, this divergence helps Hayes’ transfer to hunt alpha in yield-driven property whereas Ethereum digests its current correction.
What are the Rotation Alerts for Merchants
Hayes is positioning for relative outperformance reasonably than a directional market name. Ethereum stays structurally necessary, however near-term capital might favor protocols that immediately monetize yield, liquidity, and on-chain exercise.
The on-chain proof removes ambiguity. This isn’t narrative positioning. It’s capital shifting forward of a possible liquidity flip.
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