Recently, the trend in the cryptocurrency market has changed. The exchange rate of $ETH to $BTC has soared to 0.03225, rising nearly 5% in 24 hours, hitting a three-month high, and may short-term reach 0.035; meanwhile, the dominance of Bitcoin has sharply declined, with its market cap share dropping from 52% at the beginning of the year to 43%, a weekly drop of 6%. Money is clearly flowing from Bitcoin to Ethereum and a few strong altcoins, shifting the market from Bitcoin's dominance to a dual supremacy of Ethereum and BTC.
Why has this change occurred? Firstly, large companies are hoarding ETH, and secondly, Ethereum ETFs saw a net inflow of $154 million last week, while Bitcoin ETFs experienced a net outflow of $643 million, indicating a clear shift in investment.
Additionally, the Ethereum chain has been particularly active recently, and the technological upgrades have spurred a revival in DeFi, while Bitcoin's scalability is stalling, with the growth rate of on-chain addresses lagging behind that of Ethereum.
The loss of favor for BTC could trigger institutions to sell off to meet margin calls, leading to a drop in Bitcoin → liquidity crisis → a chain reaction of altcoins following suit; moreover, the open interest in Ethereum derivatives has reached new highs, making it susceptible to significant volatility.
In the short term, the Federal Reserve is highly likely to cut interest rates in September, and liquidity easing will benefit high-yield assets like Ethereum. It is advisable to buy ETH/BTC long positions during pullbacks. In the medium term, if ETF inflows exceed $500 million, the exchange rate may reach 0.035; those conservative can hedge risks with Bitcoin put options.
Ethereum reaching 4k this round is almost a certainty; how far away can the next wave of 100-fold opportunities be? At that time, altcoins will experience an unprecedented explosion. I have outlined strong altcoin bottom-buying strategies and will publicly share them soon. If you want to seize this opportunity, feel free to reach out directly.
