Since the April lows, Bitcoin has risen by approximately +66%, while Ethereum has outperformed with an impressive +93% gain. What stands out even more is Ethereum’s explosive breakout starting mid-July. Until then, ETH had been moving in tandem with BTC, but from July onward, it began to lead the market with a strong upward trajectory.
A key driver behind this move appears to be ETF inflows. Looking at the ETF volume data at the bottom of the chart, we can see that Bitcoin ETF volumes have remained relatively stable, fluctuating within a consistent range. In contrast, Ethereum ETF volumes surged notably during the same period Ethereum’s price spiked in mid-July. This mirrors the previous pattern where capital inflows into Bitcoin ETFs significantly boosted BTC prices.
In this context, Ethereum’s rally can be interpreted as a capital rotation from Bitcoin into Ethereum, driven by institutional interest through ETF products. It’s a classic pattern in crypto markets: BTC → ETH → Alts, and this recent shift suggests that Ethereum is currently the focal point of this rotation.
With ETF volume offering concrete evidence of this shift, it’s clear that Ethereum is once again positioning itself at the center of market momentum.
Written by Yonsei_dent
