Ethereum News Today: Ethereum Could Outperform Bitcoin in 3–6 Months as Institutional Demand Surges, Limited Supply Drives Price Hike

Galaxy Digital CEO Mike Novogratz has forecasted that Ethereum could outperform Bitcoin within the next 3–6 months, citing surging institutional demand and Ethereum’s limited supply as key drivers. His analysis, shared across multiple interviews, highlights Ethereum’s structural advantages, including its role as the backbone of decentralized finance (DeFi) and tokenized assets, which distinguish it from Bitcoin’s store-of-value narrative [1][3][6]. Novogratz emphasized that Ethereum’s scarcity—only 120 million ETH in circulation—creates a compelling case for its price appreciation, particularly as institutional investors shift strategies toward building Ethereum holdings rather than prioritizing Bitcoin [1].

The prediction aligns with observable market trends. Ether ETFs have outperformed Bitcoin-based products for six consecutive days, while the ETH/BTC ratio has surged 36%, signaling a reallocation of capital within the crypto market [2][6]. Institutional adoption is accelerating, with firms like BitMine and Ether Machine collectively accumulating over 1.3 million ETH. Galaxy Digital itself has sold 10,000 Bitcoin to rebalance its portfolio toward Ethereum [1]. These moves underscore Ethereum’s evolving role as a programmable platform for innovation, contrasting with Bitcoin’s “digital gold” perception [6].

A critical milestone for Ethereum is the $4,000 price threshold. Novogratz noted that breaking this level would validate institutional confidence and trigger a broader price discovery phase. While Ethereum traded at $3,756 as of July 25, 2025, sustained liquidity, macroeconomic stability, and continued institutional inflows will determine its ability to breach this level [1][5]. The analyst also pointed to historical parallels, such as Ethereum’s performance during the DeFi boom, which demonstrated its potential to close the gap with Bitcoin [6].

Despite the optimism, risks remain. Novogratz acknowledged that U.S. Federal Reserve policy shifts or political developments could disrupt Bitcoin’s trajectory, though he expects both assets to benefit from renewed institutional engagement. For Ethereum, crossing $4,000 would not only validate its technical strength but also reinforce its utility beyond speculative trading [4][5].

The market’s next phase hinges on whether Ethereum’s fundamentals align with its price action. Novogratz’s analysis positions Ethereum as the backbone of Web3 applications, contrasting with Bitcoin’s role as a digital gold standard. Institutional adoption, he argues, will play a decisive role in shaping the crypto landscape in the coming months [1][6].

Source: [1] [Ethereum May Outperform Bitcoin Soon, Mike Novogratz Predicts] (https://coingape.com/ethereum-may-outperform-bitcoin-soon-mike-novogratz-predicts/)

[2] [Ether ETFs Outpace Bitcoin for Six Straight Days as ETH...] (https://www.binance.com/en/square/post/07-25-2025-ethereum-news-ether-etfs-outpace-bitcoin-for-six-straight-days-as-eth-demand-surges-27420861273257)

[3] [Ethereum Could Outpace Bitcoin in Coming Months, Says...] (https://coindoo.com/ethereum-could-outpace-bitcoin-in-coming-months-says-galaxy-ceo/)

[4] [Ethereum Expected to Surpass $4000: Galaxy CEO] (https://www.bitget.com/news/detail/12560604880566)

[5] [Ethereum Could Outpace Bitcoin If $4000 Threshold...] (https://www.ainvest.com/news/ethereum-news-today-ethereum-outpace-bitcoin-4000-threshold-broken-institutional-adoption-surge-2507/)

[6] [Best Altcoins to Watch as Mike Novogratz Predicts...] (https://bravenewcoin.com/sponsored/presale/ethereum-could-outperform-bitcoin-in-the-next-3-6-months-as-per-novogratz-best-altcoins-to-watch)