1. Profit-taking on Bitcoin
Bitcoin has just reached peaks around $120,000, prompting many investors to secure their gains. This profit-taking triggers rapid corrections as the cryptocurrency hits record levels. Meanwhile, some traders are using this BTC drop to reallocate their liquidity towards more 'economical' altcoins, including Ethereum.
2. Ethereum-specific catalysts
- Several listed companies (SharpLink Gaming, Bitmin) have announced massive purchases of ETH for their balance sheets, reinforcing institutional demand.
- The prospect of Ethereum ETFs with a staking mechanism in the United States remains highly anticipated following recent SEC statements that do not classify staking as a financial security.
- Open interest in ETH futures has reached a 12-month high, indicating a flow of new capital into the derivatives market.
3. Asymmetric impact of news
Announcements regarding the failure of a bill in the U.S. House of Representatives have hit Bitcoin harder than Ethereum due to specialized trading strategies on ETH. Investors spread across several crypto-specialist jets are now favoring long ETH positions, deemed less risky given the political and regulatory volatility associated with BTC.
4. Institutional rotation and market sentiment
In a context where the global market oscillates, flows sometimes shift from the 'store of value' Bitcoin to the 'contract platform' Ethereum. Institutional rotation and incoming flows into ETH-based investment products create a performance divergence between the two leading digital assets.
In summary, the conjunction of profit-taking, Ethereum-specific catalysts (institution purchases, staking ETFs, derivatives), and the asymmetric impact of political news explains why ETH rises while BTC corrects.
