Massive $900M Daily Exodus: Investors Dump Bitcoin for Ethereum, Says Top Analyst

Digital gold's crown slips as capital floods toward smarter contracts.

The Great Rotation

Bitcoin's dominance faces a brutal test—analysts report a staggering $900 million daily shift from BTC to ETH. That's not profit-taking; that's a strategic pivot. Traders aren't just cashing out—they're redeploying.

Ethereum's Edge

Why the rush? Ethereum's ecosystem offers more than just store-of-value promises. DeFi yields, NFT minting, and layer-2 scaling solutions are pulling weight. Bitcoin’s security is legendary, but yield? As one fund manager quipped—'Gold doesn’t pay dividends unless you melt it down.'

Market Realities

This isn’t fleeting FOMO. Institutional wallets show sustained rebalancing. Ethereum’s network activity—from token swaps to staking—justifies the momentum. Meanwhile, Bitcoin maximalists are left chanting 'number go up' while smart money moves where the action is.

Finance’s Ironic Twist

Wall Street spent years fearing crypto volatility—now traditional portfolios are getting disrupted by… portfolio optimization within crypto. The irony? They’re still trying to short Tesla.

Corporate Demand Boosts ETH

BitMine has become the world’s largest corporate Ether treasury. It acquired 1.7 million ETH, worth $7.9 billion, in just over two months, and now holds 1.4% of Ethereum’s total supply. The accumulation pace far exceeds that of corporate Bitcoin holdings.

U.S. spot Ethereum exchange-traded funds have also seen strong inflows. August alone recorded $2.8 billion entering spot ETH funds. Corporate trading in Ether also recently exceeded Bitcoin treasury trading, showing rising institutional interest.

Analyst Axel Bitblaze noted on X that ETH has broken a four-year bullish chart pattern and is retesting it cleanly. “The structure points to $6800 – $7000 next,” he said, indicating further upside potential.

ETH Market Share Rising

Ethereum’s market dominance has grown at Bitcoin’s expense. ETH’s market share is now 14.57%, up from a low of 7% in April. Meanwhile, bitcoin dominance has fallen from 66% in June to 58% as capital rotates between the two assets.

Ether has recovered faster than Bitcoin this week. ETH ROSE 4% on Wednesday, reaching an intraday high of $4,638 before a slight pullback. It is now just 6.7% below its all-time high from last week. Bitcoin, in comparison, gained only 1% over the same period, topping $112,000 before retreating toward $111,000.

The capital rotation into Ethereum shows increasing investor confidence and stronger institutional involvement. Analysts say the trend may continue as corporate and ETF demand supports ETH prices and market share.

Also Read: ETH price Drop is Opportunity in Treasury Firms: Standard Chartered