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Samson Mow: ETH investors will return to Bitcoin
Bitcoin pioneer Samson Mow predicts that Ethereum investors will return to the king of cryptocurrency as ETH prices rise high enough, potentially reversing the 5-week upward trend of the top altcoin.
"Most ETH holders tend to hold a lot of Bitcoin (ICO or internal ) and they are rotating BTC into ETH to push the price based on new stories ( from ETH treasury companies )," said Jan3 CEO, a company that promotes Bitcoin adoption, on Sunday.
He added that when Ethereum reaches a high enough price, "they will dump ETH, creating new capital-trapped holders, and then rotate the profits back into BTC. No one wants to hold ETH for the long term," this Bitcoin maximalist emphasized.
Having mocked altcoin multiple times, Mow also stated that ETH will face "difficulties" in breaking the all-time high "because as it approaches that psychological level, the selling pressure becomes stronger" and referred to this as the "predicament of the holders who are stuck with their capital."
ETH/BTC ratio breaks trend
Mow continues to state that Bitcoin supporters do not need to worry about the ETH/BTC ratio breaking the downtrend.
"Ethereum has always been a means for those people to acquire more Bitcoin. This was true during the ICO period and remains true to this day."
This index measures the price of ETH in terms of BTC, currently at 0.036 according to TradingView. This figure has doubled from the 5.5-year low of 0.018 in April, when the price of ETH surged while Bitcoin remained almost flat.
However, Ethereum supporter Anthony Sassano referred to that post as being from "old-school Bitcoin maximalists" criticizing Ethereum, while stating that this is a positive sign for ETH.
The flow of funds returns to altcoin
Investor and entrepreneur Ted Pillows offered a different perspective on Sunday, predicting that ETH will reach a new peak and trigger a "small altcoin season" before the capital flows back to Bitcoin until it reaches around $140,000, and then eventually rotates back to ETH and altcoins.
This is a typical money rotation model in the crypto market as seen in previous bull market years, when Ethereum and altcoins often peak in the cycle after Bitcoin.
The dominance rate of Bitcoin has also decreased by 10% since the end of June as funds continue to rotate into altcoin.
"The strong pump of ETH to $4,300 due to institutional interest in reserve strategies has helped DeFi platforms increase their TVL, while yield farming strategies and innovative lending are attracting users back," said Nick Ruck – Director at LVRG Research.
ETH closes the weekly candle at the highest since 2021
Meanwhile, the price of ETH has just recorded the highest weekly candle close since November 2021, when the asset reached $4,300 in late Sunday trading, after increasing by 21% during the week.
Currently, ETH is only about 12% away from its historical peak of $4,891 in 2021, and the bullish momentum remains very strong despite criticisms from the Bitcoin maximalists.