Ethereum News Today: Ethereum May Outperform Bitcoin as Institutional Demand Drives 50% Surge

Galaxy Digital CEO Mike Novogratz has reiterated a bold forecast that Ethereum (ETH) could outperform Bitcoin (BTC) within the next three to six months, driven by rising institutional demand and structural advantages. Citing Ethereum’s shrinking circulating supply, its foundational role in decentralized finance (DeFi), and growing corporate adoption, Novogratz positioned ETH as a “growth asset” compared to Bitcoin’s “digital gold” narrative. This prediction follows Galaxy Digital’s recent strategic reallocation of assets, including the sale of 10,000 Bitcoin, toward Ethereum [1]. Institutional inflows into Ethereum-based products, particularly Ether ETFs, have created a supply-demand imbalance favoring ETH over BTC, with Ether ETFs outperforming Bitcoin-based products for six consecutive days [2].

Novogratz highlighted a critical price threshold of $4,000 for Ethereum, noting that breaking this level could validate its technical strength and utility beyond speculative trading [1]. As of July 25, 2025, Ethereum traded at $3,756, reflecting a 4% daily gain and a 50% price surge within a month. The ETH/BTC ratio has also risen 36%, underscoring institutional momentum [1]. Companies like BitMine and Ether Machine, collectively holding over 1.3 million ETH, have amplified Ethereum’s supply constraints, further supporting its price action [1].

The CEO acknowledged macroeconomic and regulatory risks, including potential shifts in U.S. Federal Reserve policy or political developments, which could disrupt Bitcoin’s trajectory. However, he expects both cryptocurrencies to benefit from renewed institutional engagement in the near term [4]. For Ethereum, surpassing $4,000 would not only signal technical strength but also affirm broader market confidence in its role as a programmable infrastructure layer for Web3 applications [6].

Ethereum’s recent institutional milestones, such as spot ETF approvals reaching a $10 billion asset threshold, reflect growing confidence in its utility and governance model [3]. Novogratz’s forecast diverges from broader market rankings that emphasize Bitcoin’s dominance as a store of value, instead highlighting a shift in institutional sentiment toward Ethereum’s potential as a foundational asset for the next phase of crypto adoption [3]. The coming months will be pivotal in determining whether Ethereum’s fundamentals align with its price action, with institutional adoption likely to play a decisive role in shaping the market’s next cycle [1].

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].