Ethereum outperforms Bitcoin by 26% amid institutional liquidity shift
Ethereum has surged 20% over the past month, while Bitcoin has fallen 6%, marking a 26% relative outperformance for ETH. Traders on Polymarket now assign a 26% probability to Ethereum reaching $5,000 this month. Industry experts attribute the rally to significant institutional capital inflows that have established a new liquidity floor for ETH.
March Zheng, General Partner at Bizantine Capital, notes that global stablecoin adoption and clearer regulation support Ethereum’s fundamentals. Gracie Lin, CEO of OKX Singapore, highlights real utility and large institutional moves—like BitMine’s accumulation—as evidence of deep conviction.
This trend signals a structural reallocation of liquidity away from a stagnating Bitcoin toward Ethereum and other altcoins such as XRP and CRO. Decentralized trading volumes on platforms like Hyperliquid have also surpassed traditional venues, underlining crypto-native infrastructure’s appeal.
While Bitcoin’s on-chain activity weakens and liquidations exceed $940 million, Ethereum’s institutional bedrock and rising prediction-market odds suggest a bullish outlook. Traders should watch upcoming US PCE data for potential volatility but remain alert to the long-term shift in capital flows.
Bullish
This news is bullish for Ethereum and the broader altcoin market. Institutional capital inflows creating a liquidity floor for ETH signal deep, long-term conviction beyond short-term hype. The 26% rise in prediction-market odds for Ethereum to hit $5,000 reinforces growing trader confidence. Historical cycles show that when major investors rotate funds out of Bitcoin—amid weak on-chain activity and large liquidations—into Ethereum, altcoin rallies gain momentum. Short-term volatility may arise around US PCE data, but the fundamental shift of liquidity and real-world utility projects a sustained bull run for Ethereum. As capital reallocates, ETH could lead the next phase of crypto growth while Bitcoin consolidates.