Ethereum News Today: Ethereum Could Hit $4,000 as Institutional Demand Surges and Supply Tightens

Galaxy Digital CEO Mike Novogratz has predicted Ethereum could reach $4,000 within months, citing surging institutional demand and a tightening ETH supply. His comments follow reports that firms like BitMine, Sharplink Gaming, and Ether Machine collectively hold over 1.3 million ETH in treasuries, signaling growing adoption of the cryptocurrency as a strategic reserve asset. Novogratz described this institutional accumulation as a “secret sauce” that could drive ETH’s price discovery phase, particularly as companies prepare for public listings or expand their digital asset holdings [1].

The CEO highlighted Ethereum’s limited floating supply as a catalyst for price movement, noting that large-scale purchases by corporations could create a supply crunch. This dynamic, combined with Ethereum’s evolving narrative from a utility token to a yield-bearing collateral asset, strengthens its case for outperforming Bitcoin in the near term. Supporting this view, the ETH/BTC ratio has surged over 36% in a month, reflecting stronger momentum in the second-largest cryptocurrency. While Novogratz remains bullish on Bitcoin’s long-term potential—citing a $150,000 target—he acknowledges Ethereum’s immediate utility-driven growth may position it as a short-term leader [1].

On-chain metrics further reinforce the bullish case. Stablecoin reserves in the Ethereum ecosystem have doubled to $131 billion in recent months, while total value locked (TVL) in decentralized finance (DeFi) platforms rose to 22.2 million ETH. Meanwhile, the market cap-to-stablecoin ratio has fallen to 3.4x, suggesting Ethereum may be undervalued relative to liquidity pools. These metrics align with Novogratz’s assertion that institutional buying, coupled with reduced supply availability, could break ETH’s previous resistance around $4,000 [1].

Bitcoin, however, remains a cornerstone of Novogratz’s portfolio. He reiterated confidence in its $150,000 price target, though he warned that unexpected shifts in U.S. monetary policy—particularly under a potential Trump administration—could temper his optimism. Bitfinex analysts provided a $136,000 short-term target for Bitcoin, though they noted this might represent a temporary peak [1].

The interplay between Ethereum’s supply dynamics and institutional demand underscores a broader trend: digital assets are increasingly being treated as strategic financial instruments rather than speculative vehicles. As Ether Machine and similar firms build public profiles, their treasury strategies could amplify Ethereum’s price action through forced buying or liquidity constraints. This scenario contrasts with Bitcoin’s role as a long-term store of value, where institutional adoption has been more gradual.

Novogratz’s analysis hinges on the premise that Ethereum’s supply constraints and utility-focused upgrades will outpace Bitcoin’s growth in the near term. While this remains speculative, the current data—ranging from TVL growth to stablecoin inflows—supports a narrative of shifting institutional priorities. Whether Ethereum can sustain its momentum beyond $4,000 will depend on macroeconomic factors and broader market sentiment, but the CEO’s forecast underscores a growing consensus that digital assets are reshaping traditional finance’s asset-allocation models [1].

Source: [1] [Mike Novogratz Predicts Ethereum Will Hit $4K as Institutions Pile In] [https://coinpedia.org/news/mike-novogratz-predicts-ethereum-will-hit-4k-as-institutions-pile-in/]