Ethereum has been a clear outperformer of the Q3 cycle.
According to CoinGlass data, ETH is on track to finish the Q3 with more than 70% ROI compared with Bitcoin’s 43%. That puts ETH’s quarterly returns more than 1.5x greater than those of Bitcoin.
But the larger question is, can this outperformance continue in Q4, which has traditionally favored Bitcoin?
Since 2021, ETH has not once outperformed Bitcoin in Q4. So technically, this ETH/BTC chart does have even more significance. The ETH/BTC ratio is currently chopping around the 0.03 resistance, which is a level it has failed to reclaim since losing it ahead of the October crash.
A clean breakout above 0.03 could therefore be the key confirmation that ETH’s Q3 momentum is carrying into Q4.
Interestingly enough, institutional positioning does not seem to be following this trend.
According to SoSoValue, Bitcoin ETFs are wrapping up Q3 with more than $6 billion in net inflows, more than 2x Ethereum’s. In fact, BTC’s $3.1 billion in net inflows in August alone is bigger than the whole Q3 Ethereum inflow of about $3 billion.
And with corporate accumulation picking up around BTC, institutional demand still seems to be skewed towards Bitcoin.
That makes Bitmine’s latest buying of Ethereum [ETH] rather intriguing. It came just as MSTR and Strive were continuing their BTC accumulation, and rotational buying in altcoins was getting going.
So if the rotation continues and ETH/BTC breaks higher, could it set the stage for a Q3-style “ETH-driven” rally in Q4?
Does BMNR’s Ethereum buying signal a broader rotation?
BitMine is once again doubling down on its ETH strategy and has added another 17,000 ETH to its holdings.
The timing is certainly intriguing as Strategy added 1,665 BTC to its holdings, while Strive bought $94.5 million worth of Bitcoin, thus surpassing the 27,400 BTC threshold. This puts fresh accumulation behind both ETH and BTC as capital begins to rotate back into altcoins.
This shift is already starting to show in the price action as ETH is outperforming BTC on the monthly timeframe. Meanwhile, the Altcoin Season Index has broken above its mid-August high of 61, and Bitcoin dominance is down nearly 1.7% this month.
Together, the improving altcoin breadth, lower BTC dominance, and new corporate accumulation may give Ethereum another leg higher as October draws near.
The logic is simple: FOMO is currently favoring Ethereum.
ETH’s Q3 rally is adding to the setup, as the asset has already delivered more than 1.5x Bitcoin’s ROI this quarter, thus providing investors with yet another reason to HODL ETH.
Against this backdrop, ETH/BTC could be entering a stronger accumulation phase with BMNR’s buying just one part of the broader setup.
If this momentum holds, a breakout in ETH/BTC could be next. That would put Ethereum in a position to outperform Bitcoin [BTC] in Q4 for the first time since 2021.
Final Summary
- BMNR adds 17k Ethereum as altcoin rotation gains momentum.
- Falling BTC dominance puts ETH/BTC back in focus.