Bitcoin News Today: Bitcoin Advocate Warns Ethereum Rally May Be Short-Lived Due to BTC Rotation

Samson Mow, a prominent Bitcoin advocate and founder of JAN3, has warned that the recent upward momentum in Ethereum (ETH) may not be sustainable, as some investors could soon shift their holdings back into Bitcoin. In a recent post, Mow suggested that many ETH buyers already hold Bitcoin—often acquired through initial coin offerings (ICOs) or insider access—and are using that BTC to rotate into ETH, effectively inflating prices [1]. According to Mow, this strategy is likely to backfire once ETH reaches a psychologically significant price level, at which point sellers may offload their positions, leaving new buyers holding the bag [1].

He described this scenario as a “Bagholder’s Dilemma,” emphasizing the risk of Ethereum being viewed as a short-term speculative asset rather than a long-term store of value [1]. His comments reflect a broader skepticism toward Ethereum’s role in the crypto market, as he continues to advocate for Bitcoin’s dominance and perceived stability [1].

The ETH/BTC ratio has risen to approximately 0.036 on TradingView, up from a five-and-a-half-year low of 0.018 in April, suggesting a recent inflow of capital into Ethereum [1]. Ether’s price reached $4,310 in late trading on Sunday, marking a 21% weekly gain and bringing it within 10% of its 2021 all-time high of $4,880 [1]. However, Mow argues that this move is part of a cyclical rotation, not a fundamental shift in Ethereum’s value proposition [1].

Some market observers remain bullish on Ethereum, believing it could break through to a new high and trigger a “mini altseason,” a period of increased enthusiasm for alternative cryptocurrencies [1]. Following such a peak, capital may return to Bitcoin until it reaches around $140,000, before the cycle repeats—mirroring patterns seen in previous bull runs [1].

Nick Ruck, director at LVRG Research, noted that institutional demand and innovative strategies, such as decentralized finance (DeFi) staking and yield generation, are contributing to Ethereum’s recent performance [1]. These factors, combined with on-chain metrics like increased total value locked (TVL), suggest that Ethereum’s rally is supported by more than just speculative rotation [1]. Meanwhile, Bitcoin’s dominance has dropped by roughly 10% since late June, indicating that capital is already shifting into altcoins [1].

Despite these developments, Mow maintains that Ethereum lacks the long-term appeal of Bitcoin, particularly as a hedge against inflation and devaluing fiat currencies. He argues that Bitcoin’s fixed supply of 21 million coins makes it uniquely positioned as a digital store of value [1]. Furthermore, he emphasizes the need for broader adoption of Bitcoin as a means of exchange, a milestone he believes is inevitable as more individuals and institutions recognize its benefits [1].

While Mow’s analysis is rooted in his long-held Bitcoin-centric views, it highlights a growing divide in the crypto community between those who see Ethereum as the platform of the future and those who view Bitcoin as the only true digital asset. As the market continues to evolve, the interplay between these two dominant cryptocurrencies will likely shape the broader narrative of the industry’s next chapter [1].

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[1] Samson Mow Believes Bitcoin Is Undervalued_ The Hidden ... (https://www.masudecr.com/samson-mow-believes-bitcoin-is-undervalued_-the-hidden-potential-of-digital-gold/)