Amid the recent strength of Ethereum (ETH), Samson Mow, well-known as a Bitcoin (BTC) supporter, predicted that investors will eventually return funds to Bitcoin. He argued that while Ethereum's inflow may appear to be on an upward trend, it is likely a temporary phenomenon.
On the 7th, Mow posted on his X (formerly Twitter) account, "Most ETH holders have a significant amount of Bitcoin through ICOs or internal relationships" and "They are exchanging BTC for ETH to drive up prices in line with a new narrative, namely the emergence of Ethereum-based financial companies." He added, "Once ETH price rises sufficiently, they will sell and reinvest profits back into BTC" and warned that "ultimately, only a new generation of 'bag holders' will remain."
He further stated that "no one intends to hold ETH long-term" and predicted that Ethereum would find it difficult to break its all-time high. Mow described this as the 'Bagholder's Dilemma', diagnosing that selling pressure will intensify as it approaches the psychological resistance line.
The ETH/BTC ratio recently broke through its downward trend line, attracting market attention. Currently, the ETH/BTC exchange rate is around 0.036, which is double the low of 0.018 recorded in April this year. Despite this trend, Mow emphasized that "Ethereum has always been merely a means to increase Bitcoin" and that "this was true during the ICO period and remains so now."
Meanwhile, Ethereum supporter Anthony Sassano countered Mow's claims as "criticism from an outdated Bitcoin maximalist" and argued that this is actually a strong signal for ETH.
Investor Ted Pillows offered a different perspective. He predicted that after Ethereum breaks its all-time high again, a mini altcoin season will begin. Subsequently, funds will return to Bitcoin up to around $140,000, and finally circulate back to Ethereum and altcoins. This is a pattern commonly seen in past bull market cycles.
Bitcoin's market share has also dropped by 10% since the end of June, indicating that funds are gradually moving to altcoins. Ethereum has surged to $4,300 with institutional investor interest, and the Total Value Locked (TVL) in the DeFi ecosystem is also showing an increase. Nick Ruck, director of LVRG Research, explained that "innovative yield farming strategies and lending systems are drawing users back to the Ethereum platform."
Ethereum has lifted market sentiment by recording its highest weekly closing price since November 2021 this week. Currently, it is 12% below its 2021 peak of $4,878, and expectations for further rise remain valid. Despite criticism from Bitcoin maximalists, ETH's momentum appears likely to continue for the time being.
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