Bitcoin News Today: Ethereum Could Hit $4,000 in 3-6 Months as Institutional Demand Drives 10.55% Outperformance

Galaxy Digital CEO Michael Novogratz has predicted that Ethereum (ETH) could approach $4,000 and outperform Bitcoin within three to six months, driven by surging institutional demand. Speaking to CNBC, Novogratz cited limited ETH supply as a catalyst for a potential supply shock, arguing that institutional investors are aggressively accumulating the asset [1]. At the time of publication, Ether traded at $3,618, but Novogratz stated it is “destined to knock on the $4,000 ceiling a few times,” emphasizing that breaching this level would trigger further price discovery [2].

The bullish thesis is supported by recent on-chain activity, including large ETH purchases by firms like Sharplink Gaming and BitMine Immersion Technologies. BitMine disclosed holdings of 566,776 ETH ($2.03 billion), while Sharplink held 360,807 ETH ($1.29 billion). Novogratz highlighted that such firms are “raising capital every day and buying Ether,” signaling a structural shift in institutional adoption [3]. Meanwhile, Ether Machine plans to list on the Nasdaq as “ETHM,” managing over 400,000 ETH ($1.5 billion) at launch, further amplifying institutional exposure [3].

Market indicators also suggest Ethereum’s growing strength. The ETH/BTC relative strength ratio surged 36.53% over 30 days, according to TradingView [4]. This outperformance aligns with Novogratz’s forecast that Ethereum’s narrative of utility and adoption is gaining traction, potentially overshadowing Bitcoin’s speculative allure. However, he acknowledged Bitcoin’s near-term upside, citing a $150,000 price target as a “decent” possibility if current trends persist [5]. This dual outlook reflects evolving dynamics between the two largest cryptocurrencies, with Ethereum’s structural advantages—such as limited supply and institutional inflows—positioning it for potential dominance.

Novogratz’s analysis also incorporates macroeconomic risks. He warned that a reversal in U.S. Federal Reserve policy, such as a pivot away from rate cuts, could disrupt his thesis. “If Trump changes his mind and decides we don’t need lower rates, that would change my thesis,” he noted, underscoring the sensitivity of crypto markets to political and monetary policy shifts [6]. This perspective is echoed by other analysts, including BitMEX co-founder Arthur Hayes, who predicted Ethereum could reach $10,000 by year-end [9].

The broader market context remains critical. While Ethereum’s $4,000 target is a technical milestone, its achievement would depend on sustained institutional participation and regulatory clarity. Novogratz emphasized that breaching this level could trigger volatility and further price discovery [8]. Meanwhile, Bitcoin’s trajectory—projected to test $136,000 next—highlights the coexistence of speculative and utility-driven narratives in crypto markets [5].

Institutional adoption, coupled with macroeconomic tailwinds, suggests a pivotal year for Ethereum. Novogratz’s forecast underscores the convergence of traditional finance and decentralized assets, with ETH’s structural advantages and growing demand from major firms reshaping market expectations. However, the path to $4,000 remains contingent on maintaining current trends and navigating potential policy shifts.

Source:

[1] [Ether Price $4K Surge Outperform Bitcoin Galaxy Digital CEO](https://cointelegraph.com/news/ether-price-4k-surge-outperform-bitcoin-galaxy-digital-ceo)

[2] [Ether Will Knock On $4,000 and Soon Outperform Bitcoin Novogratz](https://cryptopanic.com/news/23646793/Ether-will-knock-on-4000-and-soon-outperform-Bitcoin-Novogratz)

[3] [Ether Will ‘Knock on $4,000’ and Soon Outperform Bitcoin: Novogratz](https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96495445/ex-gemini-kraken-exec-appointed-as-ceo-of-crypto)

[4] [Ether Will 'Knock on $4,000' and Soon Outperform Bitcoin: Novogratz](https://www.coingecko.com/en/coins/bitcoin/nok)

[5] [Ether Likely To Outperform Bitcoin In Next 3-6 Months — Mike Novogratz](https://zycrypto.com/news/)

[6] [Ether Price 4K Surge Outperform Bitcoin Galaxy Digital CEO](https://cointelegraph.com/news/ether-price-4k-surge-outperform-bitcoin-galaxy-digital-ceo)

[9] [Ether Will 'Knock on $4,000' and Soon Outperform Bitcoin: Novogratz](https://cryptopanic.com/news/23646793/Ether-will-knock-on-4000-and-soon-outperform-Bitcoin-Novogratz)