Prominent Bitcoin advocate and Jan3 CEO Samson Mow asserts that Ethereum's recent surge to $4,303—its highest weekly close since November 2021 following a 21% gain—is fueled by Bitcoin holders temporarily rotating capital into ETH through instruments like SETH tokens on Bitcoin's Stacks network. Mow claims this strategy aims to capitalize on narratives like Ethereum treasury companies, with investors planning to sell ETH at peaks and revert profits to Bitcoin. He bluntly stated: "No one wants ETH in the long run," warning of a "Bagholder's Dilemma" where selling pressure intensifies near ETH's all-time high of $4,891.
The ETH/BTC ratio has doubled from 0.018 in April to 0.036, reflecting this rotation. Mow contends early ETH insiders, who hold significant Bitcoin, are orchestrating pumps to create "new generational bagholders." Countering this, Ethereum proponent Anthony Sassano dismissed Mow's stance as "old school Bitcoin maxi" rhetoric, while analyst Ted Pillows forecasts ETH will break its ATH, trigger a brief altseason, then see capital rotate back toward Bitcoin at $140,000 before cycling into alts again.
Amid institutional accumulation—including BitMine's $3 billion ETH treasury holdings—Ethereum co-founder Vitalik Buterin separately cautioned that overleveraged ETH treasuries could pose long-term ecosystem risks. Bitcoin dominance has fallen 10% since late June as rotation into altcoins accelerates.