Bitcoin’s Samson Mow predicts Ethereum investors will shift back to BTC after ETH rises, but past cycles show altcoin growth may persist.
Bitcoin pioneer Samson Mow predicted that Ethereum investors will return to Bitcoin once ETH prices rise sufficiently, possibly reversing a five-week Ether rally.
However, past market cycle trends can suggest otherwise.
According to the CEO of Bitcoin adoption company Jan3 on Sunday, “the majority of 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).”
He said, “They’ll dump their ETH, creating new generational bagholders, and then rotate the gains back into BTC once Ether is high enough.”
The Bitcoin maximalist declared that “no one wants ETH in the long run.”
As a “Bagholder’s Dilemma,” Mow, who has frequently made fun of cryptocurrencies, went on to say that it will be “difficult” for ETH to surpass all-time highs because the closer you reach that psychological level, the stronger the drive to sell.”
ETH/BTC Doesn’t Follow Trend
Mow added that bitcoiners shouldn’t be concerned about the ETH/BTC ratio breaking the downward trendline.
“Ethereum has always been a vehicle for those people to get more Bitcoin. It was true for the ICO, and it’s true now.”
TradingView reports that the metric, which represents the price of Ether in terms of Bitcoin, is 0.036 at the moment.
Since April, when it hit its five-and-a-half-year low of 0.018, it has doubled while Ether has risen and Bitcoin has stayed mostly unchanged.
Return To Altcoin Rotation
Ted Pillows, an investor and entrepreneur, provided an alternative viewpoint on Sunday, predicting that Ether will reach a new top price and ignite a mini altseason before capital shifts back into Bitcoin until it reaches roughly $140,000, and then back into Ether and altcoins.
With Ethereum and other cryptocurrencies trailing behind Bitcoin in their cycle highs, this is a typical cryptocurrency rotation pattern observed in prior bull market years.
As the shift to cryptocurrencies continues, the dominance of Bitcoin has also decreased by 10% since late June.
Director of LVRG Research, Nick Ruck, told Cointelegraph that Ether’s “incredible pump to $4,300 from institutional interest in strategy reserve plays has helped DeFi platforms gain higher TVL, while innovative yield farming and lending strategies draw users back.”
Highest Weekly Ethereum Close Since 2021
In the meantime, after a 21% weekly rise, ETH prices reached $4,300 in late trading on Sunday, marking their highest weekly candle close since November 2021.
Despite the mockery from Bitcoin maxis, Ether is currently only 12% away from its all-time high of $4,878, which it reached in 2021.
