Chiara Bianchi
Ethereum outpaced Bitcoin and other leading altcoins on Wednesday, signaling renewed investor appetite for the world’s second-largest cryptocurrency. The broader crypto market also saw a modest rebound following a dip earlier this week.
According to PRIME’s crypto price tracker, Bitcoin climbed 0.56% in the past 24 hours, trading at $111,683 as of 10:35 p.m. Wednesday. The flagship cryptocurrency has been under pressure since its all-time high of $124,128 in mid-August, falling to a weekly low near $107,500 before stabilizing.
In contrast, Ethereum jumped 3.96% to $4,456, marking one of the strongest daily performances among altcoins. Analysts note that Ethereum has displayed lower volatility compared to Bitcoin since August, holding its price levels more steadily.
Why Ethereum Is Outperforming
“Ethereum’s advantage comes from strong ETF inflows, increased staking activity, and rising demand from digital asset treasuries (DATs),” explained Nick Ruck, director at LVRG Research.
Ethereum has enjoyed consistent inflows into spot ETFs throughout July and August, surpassing Bitcoin ETF inflows in recent weeks. Presto Research analyst Min Jung added that DAT firms accumulating Ethereum have been a key driver of Wednesday’s price surge.
“ETH is once again outperforming thanks to DAT-driven flows,” Jung noted. “But the sustainability of this trend depends on whether treasuries can keep up the current level of purchases.”
Capital Rotation from Bitcoin to Ethereum
Market strategists also highlight an ongoing capital shift from Bitcoin to Ethereum, with traders seeing greater profit potential after Bitcoin’s record-breaking summer rally. This rotation of capital has been a major catalyst for Ethereum’s relative strength in recent weeks.
The Rise of Digital Asset Treasuries (DATs)
Corporate digital asset treasuries have become a defining trend in 2024. Earlier this month, Michael Saylor’s Strategy added 4,048 BTC to its reserves, bringing its total holdings to 636,505 BTC — making it the largest corporate Bitcoin treasury globally.
However, an increasing number of companies are now building Ethereum-focused treasuries. The top four corporate ETH holders — Bitmine, SharpLink Gaming, Bit Digital, and BTCS — collectively control 2.7 million ETH worth more than $12 billion.
Macro Factors: Fed Policy and Employment Data
Beyond crypto-specific drivers, traders remain focused on the U.S. Federal Reserve’s interest rate policy. The upcoming nonfarm payroll (NFP) report, due Friday, will offer insight into employment growth and inflationary pressures. Stronger-than-expected payroll figures could signal an overheating economy, influencing Fed decision-making.
The next Federal Open Market Committee (FOMC) meeting is set for September 16–17, where the CME FedWatch Tool shows a 97.6% probability of a 25 basis point rate cut. Such a move could further shape crypto market dynamics in the weeks ahead.
