Alex Thorn’s recent observations highlight a striking narrative for Ethereum (ETH) as it rebounds from historic lows against Bitcoin (BTC) to approach its highest levels since 2024. The crypto community appears to be engaging in a significant rotation trade from BTC to ETH, as indicated by recent market movements.
The ETH/BTC ratio has experienced a remarkable journey, plummeting to its lowest levels in years before swiftly recovering. This price action signals a shift in sentiment and trading strategies among crypto enthusiasts.
Thorn’s insights suggest that investors are actively participating in a rotation trade, reallocating assets from Bitcoin to Ethereum based on perceived opportunities and market dynamics. The overnight surge in the ETH/BTC ratio points to a noteworthy move in favor of Ethereum.
Despite the evident interest in the BTC-ETH rotation trade, Thorn cautions that it may be too early for the trend to fully materialize. He emphasizes that the momentum for a significant rotation could hinge on the initiation of inflows into BTC ETFs.
The commencement of substantial fund inflows into Bitcoin ETFs could serve as a critical catalyst for the rotation trade. Such inflows into Bitcoin-related investment products could alter market dynamics and potentially trigger a more pronounced shift towards Ethereum.