The flow of funds from Bitcoin into Ethereum is still happening, which could be a precursor for altseason.
“Capital has been rotating from Bitcoin into Ethereum,” said popular analyst Will Woo on Wednesday.
He posted a chart showing that flows into Ether are around $900 million per day, which has caught up with flows into Bitcoin.
“This latest climb in flows started when Tom Lee’s ETH treasury company, BitMine, started their ETH accumulation,” he said.
The flows, which appear to be the highest for at least two years, started surging in July, indicating that corporate Ether treasuries are driving the momentum.
BitMine is the world’s largest corporate Ether treasury, having amassed a whopping stash of 1.7 million ETH worth $7.9 billion in just over two months, far outpacing Strategy’s Bitcoin accumulation pace. This one company alone now holds 1.4% of the entire supply of Ethereum.
In addition to the corporate accumulation of Ether, US spot exchange-traded funds have also seen accelerated inflows of the asset. August alone has seen an aggregate of $2.8 billion enter spot ETH funds so far, and those inflows accelerated again this week as the asset recovered. Corporate Ether treasury stock trading volumes also flipped those for Bitcoin treasuries last week.
ETH prices still have a long way to go, according to analysts such as Axel Bitblaze, who observed that the asset has broken a four-year “bullish megaphone” chart pattern before retesting clean. The structure points to $6,800 to $7,000 next, he said.
Ethereum’s market dominance has also increased at the expense of Bitcoin, which has dropped more than 10% from its all-time high earlier this summer.
ETH market share currently stands at 14.57% having doubled from a low of 7% in April. Meanwhile, BTC dominance has fallen to 58% from its high of 66% in June as capital rotates from one asset to the other.
As if to highlight the notion, Ether has made a faster recovery than Bitcoin this week. ETH has made 4% on the day, tapping an intraday high of $4,638 on Wednesday before it slipped slightly.
Ether is now just 6.7% away from its all-time high last week and is outperforming BTC at the moment. Bitcoin is up just 1% over the past day, topping $112,000 before retreating back towards $111,000 during Asian trading on Wednesday.
