He continues: “Ethereum has long been the spiritual home of DeFi, with proven apps and a thriving developer base. But as institutions deploy capital into protocols, they won’t just look for innovation, they’ll demand security. And the largest security budget in crypto doesn’t belong to Ethereum, it belongs to Bitcoin. The future isn’t a Bitcoin vs Ethereum binary. It lies at their intersection: ETH liquidity plus BTC security unlocking the next wave of institutional DeFi.”
Moreover, Sergei Gorev, Head of Risk at YouHodler, the season of profit redistribution among crypto holders continues on crypto platforms.
In the last few weeks, there have been significant inflows into second-tier coins, as well as local outflows of liquidity from BTC. “Market participants are cautiously strengthening their positions in ETH by selling BTC. There is also a noticeable increase in the positive dynamics in capital flows to SOL.”
That said, with the beginning of the autumn business season, the price of BTC may straighten again, Gorev said.
“In our opinion, the strengthening of the position of second-tier coins is quite long-term,” Gorev argued. “Firstly, this is due to the market redistribution of profits of early investors in BTC, and secondly, in the future, the creation of crypto reserves may occur in the most liquid crypto projects, which can attract a wide range of corporate investors willing to invest billions of dollars. We think the next interesting market ideas could be SOL and XRP.”
At the time of writing on Thursday morning, BTC trades at $110,467. The coin initially surged to $112,502, but has failed to hold that level.
It has then plunged again to the current level, which is the day’s lowest point.
BTC is down 2.1% in a week and 3.5% in a month. It’s still green within a year, with an increase of 95.8%.
Bitcoin Price Chart. Source: TradingView
Ethereum is currently trading at $4,369. It saw an increase from the intraday low of $4,305 to the intraday high of $4,486.
It has since decreased to the current level, but it’s still green over the 24 hours.
While it’s down 4% in a week, it’s up 19% in a month and 85% in a year.
Meanwhile, the crypto market sentiment has continued increasing within the neutral zone. The crypto fear and greed index climbed from 42 yesterday to 44 today.
Investors are highly cautious and are awaiting further signals to see which direction the market will turn.
Source: CoinMarketCap
Meanwhile, on Wednesday, the US BTC spot exchange-traded funds (ETFs) recorded another day of inflows of $301.32 million – similar level to the day prior. Four ETFs saw positive flows, and one recorded outflows.
On the other hand, the US ETH ETFs saw another day of outflows on Wednesday, with $38.24 million.
Meanwhile, U.S. Bancorp, the fifth-largest commercial bank in the US, relaunched its institutional Bitcoin custody service after three years, following regulatory clarity and rising demand from investors. The service will initially cover BTC for registered investment funds and spot Bitcoin ETF providers, with plans to expand if conditions allow.
Moreover, the largest Ethereum corporate holder, Bitmine, acquired an additional 80,325 ETH on Thursday, valued at $358 million from Galaxy Digital and FalconX, as part of its Ethereum Strategy. Bitmine now holds a total of 1,947,299 ETH, valued at $8.69 billion.
The crypto market decreased over the past day, while the stocks went up. By the closing time on Wednesday, the S&P 500 was up by 0.51% and the Nasdaq-100 increased by 0.79%, while the Dow Jones Industrial Average fell by 0.054%. Investors are digesting a slew of reports this week and are preparing for the August jobs report, set to be released this Friday.
The market is likely to continue with minor drops and increases in the near term. In the mid-term, analysts expect further increases.
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