Capital is rotating from Bitcoin to Ethereum, said popular analyst Willy Woo on Wednesday.
He published a chart showing that flows into Ethereum are around $900 million per day, surpassing flows into Bitcoin.
– This latest surge in flows began when Tom Lee’s treasury company, BitMine, started accumulating Ethereum – he explained.
Inflows, which appear to be the largest in two years, began to rise in July, indicating that corporate treasuries are driving momentum.
Institutions Dictating Ethereum’s Price
BitMine is the world’s largest corporate Ethereum treasury, having amassed a massive stockpile of 1.7 million Ethereum worth $7.9 billion in just over two months, far outpacing Strategy’s pace of Bitcoin accumulation. This company alone now holds 1.4% of the total Ethereum supply.
Alongside corporate accumulation, U.S. Ethereum spot ETFs have also recorded accelerated inflows. In August alone, a total of $2.8 billion has flowed into spot Ethereum funds, with these inflows accelerating again this week as the asset recovered. The trading volume of shares in companies investing in Ethereum also surpassed those investing in Bitcoin last week.
The price of Ethereum still has a long way to go, according to analysts like Axel Bitblaze, who noted that the second-largest cryptocurrency broke a four-year chart pattern before retesting. The structure indicates a potential of $6,800 to $7,000, he said.
Ethereum’s market dominance has also increased at the expense of Bitcoin, which has fallen by more than 10% from its peak earlier this summer.
Ethereum’s market share currently stands at 14.57%, having doubled from a low of 7% in April. Meanwhile, Bitcoin’s dominance has dropped to 58% from its high of 66% in June as capital rotates from one asset to another.
Ethereum’s Price Recovers Faster
Ethereum has recovered faster than Bitcoin this week. With a 4% increase yesterday, it reached its highest intraday value of $4,638 before slipping slightly.
Ethereum is now just 6.7% away from its peak value reached last week. Bitcoin has only risen by 1% over the past day, surpassing $112,000 before retreating back to $111,000 overnight.
