Bitcoin pioneer Samson Mow predicts that Ethereum investors will rotate back to Bitcoin when the ETH price is high enough, which could reverse Ethereum's five-week rally.
However, historical market cycle patterns may suggest otherwise.
"Most ETH holders have a lot of BTC (ICO/insiders), and they transfer these BTC into ETH to push a new narrative (Ethereum treasury companies)," said Sunday, CEO of Bitcoin adoption company JAN3.
He added that once the price of Ethereum (ETH) is high enough, "they will sell ETH, creating a new generation of holders, and then transfer the profits back to BTC."
"In the long run, no one wants ETH," said a Bitcoin (BTC) extremist.
Mow has repeatedly mocked altcoins, adding that it would be "challenging" for ETH to break its historical high, as "the closer it gets to that psychological level, the stronger the selling pressure," which he described as "the holder's dilemma."
Mow continued to state that Bitcoin holders do not need to worry about the ETH/BTC ratio breaking its downtrend line.
According to TradingView data, this metric, which is the price of Ethereum priced in BTC, is currently at 0.036.
Since April, Ethereum has surged while Bitcoin has remained relatively stagnant, with the ratio doubling from a five-and-a-half-year low of 0.018.
Ethereum advocate Anthony Sassano tagged the post as "old-school Bitcoin extremists" criticizing Ethereum, viewing it as a bullish signal for ETH.
Investor and entrepreneur Ted Pillows offered a different perspective on Sunday, predicting that Ethereum will reach new peak prices, triggering a small altcoin season, followed by a flow of funds back to Bitcoin until it reaches around $140,000, and then back to Ethereum and altcoins again.
This is a typical cryptocurrency rotation pattern that has occurred in previous bull market years, where the cycle peaks of Ethereum and altcoins lag behind Bitcoin.
Since the end of June, Bitcoin's dominance has also dropped by 10% as funds continue to flow into altcoins.
Ethereum "benefited from institutional interest in strategic reserve plays, leading to a remarkable rise from $4,300, helping DeFi platforms achieve higher TVL, while 'innovative yield farming and lending strategies attract users back,'" Nick Ruck, director of LVRG Research, told Cointelegraph.
Meanwhile, the price of ETH reached $4,300 in late trading on Sunday, with a weekly increase of 21%, marking the highest weekly candle close since November 2021.
Despite the mockery from Bitcoin extremists, Ethereum is only 12% away from its historical high of $4,878 in 2021, and the momentum remains very strong.
Related: As Ethereum (ETH) breaks $4,200, Vitalik Buterin regains the title of "On-chain Billionaire"
Original article: “Samson Mow: Ethereum (ETH) holders will rotate back to Bitcoin (BTC)”
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