Ethereum News Today: Ethereum Surges as Bitcoin's Dominance Crumbles Under Institutional Shift

Bitcoin Pulls Back as Ethereum Gains Momentum

Bitcoin has seen a pullback in recent trading, with the price retreating from an intraday high of $117,300 to trade near $112,500 as investors reposition for Ethereum’s growing momentum. This shift has been attributed to a combination of Federal Reserve signals, institutional adoption of Ethereum, and the broader appeal of altcoins. The crypto market has also experienced a significant shift in capital, with Bitcoin’s market dominance falling below 60% for the first time since March.

Ethereum, on the other hand, has surged to a new all-time high, crossing above $4,867 for the first time since November 2021. The rally has been driven by a dovish shift in U.S. monetary policy, with Federal Reserve Chair Jerome Powell hinting at potential rate cuts in September. This, combined with institutional adoption and renewed inflows into Ethereum-based ETFs, has boosted investor sentiment. Ethereum ETFs have attracted over $12.12 billion in assets under management, while corporate Ethereum treasuries have acquired $1.6 billion worth of ETH in the past month alone.

The Ethereum price surge has been fueled by a confluence of factors, including the Pectra upgrade in May, which improved staking efficiency and user experience. Institutional players like BitMine and SharpLink have further reinforced the bull case by acquiring large amounts of ETH, collectively holding over $29.75 billion worth of the asset. Analysts have attributed this momentum to Ethereum’s role as a foundational platform for decentralized finance (DeFi) and smart contracts, which continues to expand its utility beyond a speculative asset.

Bitcoin, meanwhile, has faced pressure despite its recent short-term rally, with ETFs shedding over $1.1 billion in five days as investors de-risk ahead of Powell’s Jackson Hole speech. The price has fallen nearly 10% from its August 14 peak of $124,545. This correction has been driven by shifting expectations around rate cuts, with market odds dropping from 90% to 75%. Bitcoin ETF outflows have accelerated during this period, with over $100 million in liquidations reported within a single hour of trading as of late August.

Notably, Ethereum’s rise has coincided with a broader shift in investor preferences. Ethereum’s market cap has grown to $555 billion, significantly trailing Bitcoin’s $2.4 trillion but outpacing the previous year's growth rate. This shift has led to increased inflows into Ethereum-focused investment products, which attracted $2.86 billion in the week ending August 15, compared to Bitcoin’s $552 million. The trend reflects a move toward altcoins, with large-cap assets like Ethereum gaining traction among institutional and retail investors.

The momentum around Ethereum has also been bolstered by regulatory developments. The approval of Ethereum ETFs in July 2024 and the emergence of stablecoin frameworks in Hong Kong and Japan have created a more favorable environment for institutional investment. These regulatory shifts have positioned Ethereum as a utility-rich reserve asset, with market participants citing its potential to underpin future financial systems.

In contrast, Bitcoin faces a more uncertain outlook, with conflicting price predictions from key figures in the crypto space. While some analysts remain bullish on Bitcoin, forecasting prices as high as $175,000 or even $1 million, others have shifted their focus to Ethereum as the dominant narrative in the market. This divergence highlights the evolving dynamics within the crypto ecosystem, where technological innovation and institutional adoption are reshaping the competitive landscape.

Source: [1] Eric Trump's BTC Price Predictions (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet) [2] Bitcoin price breakout to $117K liquidates bears (https://cointelegraph.com/news/bitcoin-price-breakout-to-dollar117k-liquidates-bears-opening-door-to-fresh-all-time-highs) [3] Jack Dorsey Says There's Only One Way To Choose Between Bitcoin and Ethereum (https://finance.yahoo.com/news/jack-dorsey-says-theres-only-123727966.html) [4] Why Arthur Hayes Expects Ethereum to Surge to $20,000 (https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html) [5] Ethereum hits fresh all-time high amid wider market rally (https://www.theblock.co/post/366657/shell-dnp-ethereum-hits-new-all-time-high-price-as-eth-crosses-4900-for-the-first-time-ever) [6] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume) [7] Bitcoin ETFs Shed $1 Billion in Five Days Amid Ethereum Surge (https://finance.yahoo.com/news/bitcoin-etfs-shed-1-billion-142904153.html)