Ethereum News Today: Ethereum Outperforms Bitcoin in 3-6 Months as Institutional Demand and Supply Constraints Drive Gains

Galaxy Digital CEO Mike Novogratz has issued a bold forecast that Ethereum (ETH) could outperform Bitcoin (BTC) over the next three to six months, citing growing institutional demand, supply constraints, and evolving market dynamics. His remarks, shared across multiple platforms including interviews and crypto news outlets, underscore a strategic shift in market sentiment as Ethereum’s fundamentals align with increasing adoption in decentralized finance (DeFi) and blockchain infrastructure [1].

Novogratz highlighted Ethereum’s post-merge transition to a proof-of-stake model and ongoing upgrades as key drivers of its competitiveness. These developments, he noted, have improved scalability, reduced gas fees, and tightened the cryptocurrency’s supply, creating a tailwind for outperformance. “Ethereum’s shrinking supply and institutional demand make it a compelling candidate to outperform Bitcoin in the next 3–6 months,” he stated, emphasizing the platform’s role in supporting DeFi, smart contracts, and layer-2 solutions [2].

The analyst also pointed to a 36% surge in the ETH/BTC trading ratio over the past month as evidence of Ethereum’s relative strength [3]. This momentum aligns with broader industry trends, including inflows into Ethereum-focused ETFs and growing institutional interest in blockchain projects. Novogratz projected Ethereum’s price could reach $4,000, a level he described as a critical threshold before entering a new phase of price discovery [4]. He noted that if current trends persist, Ethereum may not only match but exceed Bitcoin’s performance by late 2025, provided supply dynamics and institutional activity remain favorable [5].

While Bitcoin maintains its dominance as a store of value, Novogratz argued that Ethereum’s active innovation and expanding use cases position it to capture greater market share in the short term. He acknowledged that Bitcoin’s recent outperformance—driven by spot ETF approvals and macroeconomic factors—remains robust but stressed that Ethereum’s utility in decentralized applications and tokenized assets offers unique upside [1].

The potential approval of a U.S. spot Ethereum ETF was identified as a catalyst for institutional adoption, mirroring Bitcoin’s trajectory earlier this year. Such a development could amplify Ethereum’s visibility and attract new capital, further narrowing the gap between the two cryptocurrencies [2]. However, Novogratz cautioned that macroeconomic volatility and regulatory developments remain critical variables that could influence short-term outcomes [5].

Investors are now closely monitoring Ethereum’s price action, particularly its ability to break above key resistance levels. Novogratz reiterated that Ethereum’s ecosystem growth, coupled with its role in blockchain innovation, positions it as a strong contender for short-term outperformance. “Ethereum isn’t just catching up—it’s actively outperforming on technical and fundamental metrics,” he concluded, urging market participants to track supply-side developments and institutional inflows [4].

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[1] [Billionaire Mike Novogratz Says Ethereum Has a Chance...](https://dailyhodl.com/2025/07/24/billionaire-mike-novogratz-says-ethereum-has-a-chance-to-outperform-bitcoin-in-coming-months-heres-why/)

[2] [Ethereum Outperforms Bitcoin in 3-6 Months as Institutional...](https://www.ainvest.com/news/ethereum-news-today-ethereum-outperforms-bitcoin-3-6-months-institutional-demand-supply-constraints-etf-inflows-drive-30-surge-2507/)

[3] [ETH on Track to Hit $4K And Beat Bitcoin: Galaxy Digital...](https://coinpaper.com/10185/eth-on-track-to-hit-4-k-and-beat-bitcoin-galaxy-digital-ceo)

[4] [Mike Novogratz Predicts Ethereum Will Hit $4K as...](https://coinpedia.org/news/mike-novogratz-predicts-ethereum-will-hit-4k-as-institutions-pile-in/)

[5] [$4000 Is Ethereum's Last Hurdle Before Price Discovery...](https://www.benzinga.com/crypto/cryptocurrency/25/07/46627175/4000-is-ethereums-last-hurdle-before-price-discovery-says-galaxy-digitals-mike-novogratz)