according to the materials of the site - By Cointelegraph
Bitcoin pioneer Samson Mow predicts that Ethereum investors will return to Bitcoin once the price of ETH rises high enough, which could potentially reverse Ethereum's five-week growth.
However, historical market cycle trends may suggest otherwise.
«Most ETH holders have a lot of BTC (ICO/insiders), and they are converting these BTC to ETH to attract new narratives (Ethereum treasury companies),» said the CEO of JAN3, a Bitcoin implementation company, on Sunday.
He added that once the price of Ethereum (ETH) rises high enough, 'they will dump their ETH, creating a new generation of bag holders, and then return the profits back to BTC.'
«In the long term, ETH is needed by no one,» said Bitcoin maximalist Samson Mow. Mow, who has repeatedly mocked altcoins, added that it will be 'difficult' for ETH to overcome historical highs, 'because the closer you get to this psychological level, the stronger the desire to sell,' calling it the 'bag holder's dilemma.'
Mow continued to assert that Bitcoiners should not worry about the ETH/BTC ratio breaking the downward trend line.
«Ethereum has always been a tool for these people to acquire more Bitcoin. This was true for ICOs, and it is true now.»
According to TradingView, this indicator, reflecting the price of Ether in BTC, currently stands at 0.036.
It has doubled from the April low of 0.018 over five and a half years, as Ether surged while Bitcoin remained relatively stable.
Ethereum supporter Anthony Sassano called this post 'old-school Bitcoin-maxi,' criticizing Ethereum and calling it a bullish signal for ETH.
Investor and entrepreneur Ted Pillows expressed a different viewpoint on Sunday, predicting that Ethereum will reach a new price peak and trigger a small altcoin season, after which capital will flow back into Bitcoin until its price reaches around $140,000, followed by a final return to Ethereum and altcoins.
This is a typical cryptocurrency rotation scheme observed in previous bull market years: Ethereum and altcoins lagged behind Bitcoin with their cyclical highs.
Bitcoin's dominance has also decreased by 10% since the end of June, as the rotation into altcoins continues.
«The incredible rise of Ethereum to $4300, driven by institutional interest in reserve strategies, helped DeFi platforms increase TVL, while 'innovative yield farming and lending strategies attract users,'» said Nick Rack, director of LVRG Research, in an interview with Cointelegraph.
Meanwhile, the price of ETH reached its highest weekly candle close since November 2021: on Sunday, at the end of trading, the asset surpassed $4300 after a weekly increase of 21%.
Ethereum is now just 12% away from its all-time high of $4878 in 2021, and despite the mockery from Bitcoin Maxis, it still maintains strong momentum.
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