Bitcoin BTC/USD maxi Samson Mow said Sunday that Ethereum ETH/USD holders are using their BTC to inflate ETH prices via new treasury narratives, only to sell them off at peaks.
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ETH A Vehicle For Further BTC Accumulation
In an X post, Mow weighed in on the ongoing surge in ETH’s price, suggesting that the second-largest cryptocurrency is merely a vehicle for BTC accumulation.
“Most ETH holders have a lot of BTC (ICO/insiders) and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury co’s),” Mow, CEO of Bitcoin technology company JAN3, said.
He predicted that once ETH is pumped high enough, these holders will sell them off and use the proceeds to buy more BTC.
“No one wants ETH in the long run,” Mow said. “Ethereum has always been a vehicle for those people to get more Bitcoin.”
The Counter Argument
Independent asset manager and cryptocurrency investor René Schneider challenged Mow’s arguments, stating that Wall Street is waking up to ETH’s strong use case, including stablecoin support, and that it would be unwise to ignore its rise.
Interestingly, Arthur Hayes, one of the most vocal BTC advocates, bought back ETH after regretting selling it earlier.
ETH Breaks Out
Mow’s statement comes amid ETH’s strong weekend rally that catapulted the second-largest cryptocurrency past $4,300. Analysts suggested that the coin may have more room to run.
Meanwhile, Ethereum creator Vitalik Buterin warned that the overleveraging practices of companies holding ETH could potentially trigger a collapse of the cryptocurrency. He, however, supported the idea of having different vehicles for people to have access to ETH.
Price Action: At the time of writing, ETH was trading at $4,292.23, up 1.59% in the last 24 hours and 20.61% in the last week, according to data from Benzinga Pro. BTC traded up 2.76% at $121,722 at last check.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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