Bitcoin advocate Samson Mow has forecasted that many Ethereum investors will ultimately shift their profits back into Bitcoin, even as Ether continues its recent rally.
Mow’s perspective on investor rotation
Mow, CEO of bitcoin adoption firm JAN3, argued that much of the recent Ether surge is driven by insiders rotating their bitcoin into ETH to take advantage of new narratives, such as Ethereum treasury companies.
He stated:
“Most ETH holders have a lot of BTC (ICO/insiders) and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury co’s)… Once Ether is high enough, they’ll dump their ETH, creating new generational bagholders, and then rotate the gains back into BTC.”
He added that breaking all-time highs would be challenging for ETH, coining this situation the “Bagholder’s Dilemma.”
ETH/BTC ratio
Mow dismissed concerns about the ETH/BTC ratio breaking its downward trend, emphasizing that Ethereum has historically served as a means for some to accumulate more bitcoin.
The ETH/BTC ratio is now at 0.036, having doubled from its five-year low in April, according to TradingView.
For a broader overview of bitcoin’s historical dominance, see the bitcoin dominance chart.
Differing market outlooks
Contrasting Mow’s stance, investor Ted Pillows predicted that Ether could reach a new all-time high, sparking a mini altseason before funds rotate back to bitcoin, potentially up to $140,000, with another cycle into altcoins thereafter.
This mirrors patterns seen in previous bitcoin price history cycles, where capital shifts between bitcoin and altcoins.
Recent market performance
ETH recently closed its highest weekly candle since November 2021, peaking above $4,300 and sitting just 12% off its all-time high.
Meanwhile, bitcoin’s dominance has dropped by 10% since late June as more capital flows into altcoins.
