Ethereum News Today: Bitcoin Maxi Mow Forecasts Capital Rotation Back to BTC from ETH Rally

Bitcoin advocate Samson Mow has predicted that Ethereum's recent price rally may be setting the stage for a reversal, with capital eventually flowing back into Bitcoin. The comments come as Ether hit $4,303 on Sunday, marking its highest weekly close since November 2021 after a 21% gain [1]. Mow, CEO of Bitcoin adoption firm Jan3, argues that the rally has been driven by Bitcoin holders rotating into Ethereum, particularly those with significant BTC holdings from the ICO era, who are using ETH to "pump it on new narratives," such as the emergence of Ethereum treasury companies [1]. He forecasts that once prices rise sufficiently, these investors will sell their ETH and shift the profits back into Bitcoin.

Mow claims that long-term holders of Ethereum, especially early insiders, are unlikely to retain the asset in the long run. “No one wants ETH in the long run,” he said, emphasizing a belief in Bitcoin’s enduring value as the ultimate store of value [1]. The ETH/BTC ratio currently stands at 0.036, double its April low of 0.018, signaling a potential shift in capital flows [1]. Additionally, Mow warned of what he called the “Bagholder’s Dilemma”—a psychological barrier near ETH’s all-time high, where the incentive to sell becomes stronger as the price approaches those levels [1].

Not all analysts agree with Mow’s bearish outlook. Anthony Sassano, an Ethereum proponent, dismissed Mow’s remarks as “old school Bitcoin maxis” rhetoric and called the recent price action a bullish sign for Ethereum [1]. Ted Pillows, another investor, outlined a more traditional market cycle forecast, predicting that ETH could break its previous high, potentially triggering a brief altseason before capital flows back into Bitcoin, possibly pushing BTC toward $140,000 [1]. This cycle-based rotation has been a recurring pattern in previous bull markets, where Ethereum and altcoins often lag behind Bitcoin’s peak before staging their own surges [1].

Bitcoin dominance has declined 10% since late June as traders shift into alternative assets [1]. This shift is supported by growing institutional interest in Ethereum, with BitMine Immersion Technologies recently adding 208,137 ETH to its reserves, increasing its total holdings to 833,137 ETH, valued at over $3 billion [1]. This move solidifies BitMine’s position as the top Ethereum-holding treasury firm and ranks it fourth among global crypto treasuries.

Ethereum’s rise has also drawn warnings from its co-founder, Vitalik Buterin. He expressed caution over the rapid growth of Ethereum treasuries, warning that excessive leverage in the space could pose long-term risks [1]. “If you woke me up three years from now and told me that treasuries led to the downfall of ETH… my guess would basically be that somehow they turned it into an overleveraged game,” he stated.

Samson Mow’s prediction reflects a broader debate within the crypto community regarding the relationship between Bitcoin and altcoins. While Ethereum is often seen as a key driver of innovation and growth, Bitcoin remains the primary store of value for many investors. As the market continues to evolve, the coming months will likely test these views, with investors closely watching for signs of capital rotation between the two leading assets.

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[1] Samson Mow Predicts Ethereum Investors to Shift Back to ... (https://cryptonews.com/news/samson-mow-predicts-ethereum-investors-to-shift-back-to-bitcoin/)