Ethereum News Today: Ethereum Outperforms Bitcoin in 3-6 Months as Institutional Demand, Supply Constraints, and ETF Inflows Drive 30% Surge

Michael Novogratz, CEO of Galaxy Digital, has predicted that Ethereum could outperform Bitcoin in the next three to six months, citing growing institutional interest, supply constraints, and technological advancements. During a July 24, 2025, interview with CNBC, Novogratz highlighted Ethereum’s potential to break above the $4,000 threshold, triggering a “price discovery” phase that could accelerate its valuation. He attributed this outlook to a combination of macroeconomic trends, increased adoption of decentralized finance (DeFi) protocols, and the rising appeal of staking mechanisms [1].

The analyst emphasized that Ethereum’s structural advantages—such as its transition to a proof-of-stake model and its role in smart contract ecosystems—position it to attract capital away from Bitcoin. “The supply squeeze, combined with macro trends, makes ETH a compelling case for outperformance,” he stated, noting that major asset managers might soon replicate their support for Bitcoin by launching Ethereum-related financial products, including spot ETFs [2]. This shift, Novogratz argued, could reshape investor allocations, redirecting funds from Bitcoin to Ethereum as institutional demand intensifies.

Recent market activity appears to validate Novogratz’s stance. Ethereum ETF inflows surged by 30% last week, with over $726 million in net inflows as U.S. investors increasingly embrace the asset. Publicly traded companies, including BitMine Immersion, have followed MicroStrategy’s lead in accumulating Ethereum reserves, now holding $2 billion worth of the token. Novogratz pointed to these corporate treasury strategies as evidence of Ethereum’s growing institutional credibility, contrasting it with Bitcoin’s long-standing dominance in crypto markets [3].

While Ethereum currently trades near $3,730—24% below its 2021 all-time high of $4,878—Novogratz argued that the market’s narrative has strengthened compared to previous cycles. Increased participation from institutional investors and broader acceptance of blockchain technology in finance create a favorable backdrop for Ethereum’s resurgence. He also highlighted the impending activation of Ethereum 2.0 upgrades as a catalyst for innovation, further reinforcing its appeal [4].

Novogratz did not dismiss Bitcoin’s long-term potential, separately forecasting it could reach $150,000 by year-end. However, he stressed that Ethereum’s unique positioning—rooted in its role as a foundational layer for DeFi and its constrained supply dynamics—makes it better suited to outperform Bitcoin in the short to mid-term. “Ethereum’s value proposition lies in its ability to drive utility beyond store-of-value speculation,” he explained, noting that DeFi protocols built on the network have historically amplified Ethereum’s price performance during bull markets [5].

Market observers remain cautious, acknowledging that regulatory developments and the execution of Ethereum’s roadmap could influence its trajectory. Despite Bitcoin’s dominance in prior cycles, Novogratz’s forecast reflects a broader shift in investor sentiment toward altcoins with clear use cases. As institutional capital continues to flow into Ethereum, the cryptocurrency’s market dynamics may diverge from Bitcoin’s, creating a new paradigm for crypto asset allocation [6].

Source:

[1] [Ether May Soon Outperform Bitcoin: Michael Novogratz](https://cointelegraph.com/news/ether-price-4k-surge-outperform-bitcoin-galaxy-digital-ceo)

[2] [Ethereum Could Outperform Bitcoin Over the Next 3 to 6 Months](https://cryptobriefing.com/ethereum-outperform-bitcoin-novogratz/)

[3] [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/)

[4] [Bitcoin News Today: Ethereum Could Hit $4000 in 3-6 Months](https://www.ainvest.com/news/bitcoin-news-today-ethereum-hit-4-000-3-6-months-institutional-demand-drives-10-55-outperformance-2507/)

[5] [Novogratz: Ethereum Could Outperform Bitcoin in the Next 3-6 Months Amid Supply Crunch](https://coincentral.com/novogratz-ethereum-could-outperform-bitcoin-in-the-next-3-6-months-amid-supply-crunch-and-institutional-demand/)

[6] [Galaxy CEO: Bitcoin is Expected to Reach $150,000 This Year](https://www.chaincatcher.com/en/article/2193181)