Ethereum’s
Mow, CEO of Bitcoin-focused company Jan3, stated on August 10 that early Ethereum adopters, especially those who already hold large amounts of Bitcoin, are behind the recent Ethereum price boost.
He claimed that these holders are temporarily using their Bitcoin to buy Ethereum to push new narratives, such as the rise of Ethereum treasury strategies. However, Mow said their goal is not to stay in Ethereum for the long term.
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Mow wrote, “They’ll dump their ETH, creating new generational bagholders, and then rotate the gains back into BTC. No one wants ETH in the long run”.
He warned that it may be hard for Ethereum to reach new highs. As prices climb closer to those levels, many investors will be tempted to sell. He described this as a “Bagholder’s Dilemma”, where the pressure to take profits increases as the price gets higher.
One key metric he addressed was the ETH/BTC ratio, which shows how much Ethereum is worth compared to Bitcoin. That ratio currently stands at 0.036, double its five-year low of 0.018 in April.
Some believe this could mean Ethereum is starting to lead the market, but Mow disagrees. He said:
Ethereum has always been a vehicle for those people to get more Bitcoin.
Meanwhile, Willy Woo recently shared his views on what is holding Bitcoin back from becoming a true digital reserve. What did he say? Read the full story.
