NEW DELHI: Virtual currency Ethereum is in its own zone, and has comprehensively beaten Bitcoin since their respective lows hit in April this year.
From an early April low of $1,385.51, Ethereum has soared about 238%, far outstripping Bitcoin’s 60% advance over the same period. The rally seen in Ethereum could be due to a combination of surging exchange-traded fund (ETF) inflows, optimism over recent network upgrades, and a broader “risk-on” sentiment draws investors toward the world’s second-largest cryptocurrency.
The divergence underscores how cryptocurrency markets are becoming more nuanced, with tokens increasingly responding to distinct fundamental drivers rather than moving in lockstep.
Ethereum on Thursday 11:30 IST trading at $4,729 after hitting the high of $4,784. Bitcoin hit the high of $1,24,210 on Thursday before shedding 1.7% to $1,22,125.
“The sustained outperformance suggests that institutional investors are making deliberate allocation decisions based on Ethereum’s specific value propositions rather than treating all cryptocurrencies as interchangeable risk assets,” market strategists noted.
Bitcoin (BTC-USD) broke past $124,000 on Thursday to hit a fresh record, fuelled by institutional demand, ETF inflows, and expectations of looser US monetary policy. The token is up 31% year-to-date, with corporate treasuries and public companies — emulating software firm MicroStrategy’s playbook — adding Bitcoin to their balance sheets.
Himanshu Maradiya, founder & chairman of CIFDAQ, said: “Bitcoin surged past $124,000 for the first time, setting a new all-time high. The rally was fuelled by strong institutional demand and growing expectations of a September interest rate cut, with CME FedWatch now showing a 93.7% probability. Ethereum also climbed near its 2021 peak, trading at $4,729. Institutional inflows remain a key driver — BTC ETFs added over $3.6 billion in the past month, while corporate and sovereign treasuries now hold 3.64 million BTC, or 17% of supply.”
Devarsh Vakil, head of Prime Research at HDFC Securities, said: “Bitcoin reached a record $123,600 but was outpaced by Ethereum, which surged to a near four-year high above $4,700. The crypto rally reflects legislative wins and new financial products, with altcoins like Cardano and Solana posting double-digit weekly gains.”
Ethereum prices rose as much as 6% on Wednesday to trade above $4,700 — just shy of its 2021 all-time high. The rally has been buoyed by growing Wall Street interest in the blockchain’s role in decentralized finance, stablecoins, and digital infrastructure, with some companies now adding ether to their balance sheets for exposure to these technologies.
Analysts say while Bitcoin’s climb is being powered by macro drivers — from ETF demand to pro-crypto signals from the Trump administration — Ethereum’s surge is rooted in its evolving utility, recent network upgrades, and targeted institutional allocations. With both tokens riding tailwinds from a bullish macro backdrop, traders expect volatility but see structural demand supporting further gains through year-end.