Bitcoin advocate Samson Mow has suggested that Ethereum’s latest rally could be setting up a reversal, with capital eventually flowing back into Bitcoin.
Key Takeaways:
- Samson Mow claims ETH’s rally is driven by BTC holders rotating into Ethereum, with plans to shift profits back to Bitcoin.
- He warns ETH faces strong selling pressure near its all-time high.
- Other analysts see ETH breaking records first, potentially triggering an altseason before funds flow back into BTC.
His comments come as Ether hit $4,303 on Sunday, marking its highest weekly close since November 2021 after a 21% gain.
Mow, CEO of Bitcoin adoption firm Jan3, claimed that many long-term ETH holders, particularly early insiders from the ICO era, already own significant amounts of Bitcoin.
ETH Gains Fueled by BTC Rotations on New Treasury Narratives, Says Mow
According to him, these investors are rotating BTC into ETH to “pump it on new narratives” such as the emergence of Ethereum treasury companies.
Once prices rise sufficiently, he predicts they will sell their ETH, leaving “new generational bagholders,” and move the profits back into Bitcoin. “No one wants ETH in the long run,” he said.
He also warned that it could be “challenging” for Ether to surpass its previous all-time high, arguing that the closer the market gets to that psychological level, the stronger the incentive to sell, what he called the “Bagholder’s Dilemma.”
The ETH/BTC ratio currently stands at 0.036, double its April low of 0.018, according to TradingView.
Not everyone shares Mow’s view. Ethereum proponent Anthony Sassano dismissed the remarks as “old school Bitcoin maxis” rhetoric, calling it a bullish sign for ETH.
Investor Ted Pillows outlined a more traditional cycle forecast, expecting ETH to break its all-time high and trigger a brief altseason before capital rotates back into Bitcoin toward $140,000, and then flows once again into ETH and other altcoins.
This cycle-based rotation has been a familiar pattern in past bull markets, with Ethereum and altcoins often lagging Bitcoin’s peak before staging their own surges.
Supporting this trend, Bitcoin dominance has fallen 10% since late June as traders shift into alternative assets.
Buterin Warns Against Risks Behind ETH Treasury Boom
While ETH’s latest run has been bolstered by institutional inflows and corporate treasuries holding Ether, Vitalik Buterin has voiced caution over the trend.
In a recent interview, he warned that excessive leverage within ETH treasuries could pose long-term risks.
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH… my guess would basically be that somehow they turned it into an overleveraged game,” he said.
Last week, BitMine Immersion Technologies, chaired by Fundstrat’s Tom Lee, added 208,137 ETH to its growing crypto reserves, boosting its total holdings to 833,137 ETH, now worth over $3 billion.
The move cements BitMine’s position as the top Ethereum-holding treasury firm and places it fourth among global crypto treasuries overall.
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