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Bitcoin sees its dominance challenged by Ethereum on a closely watched indicator: the ETH/BTC ratio. Rising to 0.02858 BTC, Ethereum breaks a resistance of several weeks. For Tom Lee, this movement may signal a return of altcoins. But the signal remains fragile, as bitcoin still holds the psychological advantage in the market.
In Brief
- Ethereum gains ground against bitcoin with an ETH/BTC ratio at 0.02858.
- Tom Lee sees this move as a possible signal of altcoins returning.
- Bitcoin still retains its central role in guiding the market.
Bitcoin Loses Ground to Ethereum
Bitcoin remains the dominant asset in the market, but Ethereum has just gained some ground. The ETH/BTC ratio has broken a resistance level established since June, a move traders often interpret as the beginning of a rotation with the fall of Bitcoin’s dominance.
The ETH/BTC ratio measures Ethereum’s performance against bitcoin. When it rises, it means ETH is advancing faster than BTC or resisting the decline better. It is not just a technical figure. It is a barometer of risk appetite.
Tom Lee, president of Bitmine and co-founder of Fundstrat, believes this breakout could signal a broader crypto market awakening. According to him, Ethereum benefits from a stronger narrative around stablecoins, tokenization, and new financial applications.
Ethereum Benefits from the Tokenization Narrative
Ethereum remains at the center of several trends attracting investors. Stablecoins circulate massively on its infrastructures and related solutions. The tokenization of financial assets also strengthens the idea that Ethereum can become a settlement layer for Wall Street.
Tom Lee summarizes this thesis with a simple phrase. Ethereum could rediscover a monetary narrative. In this scenario, ETH would no longer be just the fuel of a network. It would become a strategic asset, used to capture part of the value created by on-chain markets.
This interpretation explains why altcoins closely watch the ETH/BTC ratio. Historically, a stronger Ethereum against bitcoin often precedes phases where capital shifts toward riskier tokens.
The market is not yet talking about a confirmed altseason. But it is starting to look for support. When bitcoin slows, investors look toward assets capable of catching up. But Ethereum’s rebound is still not enough to trigger a general rotation.
The ETH/BTC ratio remains below its major historical highs. It briefly touched 0.15 in 2017, a level still very far from the current market. Caution also comes from recent data. Despite this week’s rebound, the ratio is down 7.72% over three months. Ethereum is thus emerging from a long period of weakness against bitcoin.
Ethereum spot ETFs also experienced several weeks of capital outflows in June. This pressure has not entirely disappeared. It reminds us that institutional investors have not yet massively adopted the scenario of a sustained ETH comeback.
BTC Keeps the Role of Market Arbiter
Even if Ethereum gains strength, bitcoin remains the center of gravity. A sharp BTC drop could still drag the entire market down. Stabilization, however, would give altcoins more room to breathe. This is where Tom Lee’s scenario becomes interesting. It does not rely solely on Ethereum. It also assumes a less hostile macro context, with falling oil prices, less inflationary pressure, and regulatory advances in the United States.
The CLARITY Act could play a role if investors see it as a lasting clarification for digital assets. Stablecoins and tokenization could then become stronger demand drivers for Ethereum and certain altcoins.
But the market has already seen false breakouts. Traders will therefore need to watch if ETH/BTC holds above its breakout zone. They will also need to verify if liquidity truly leaves bitcoin to move to other assets.
The signal is there, but it has not yet won its case. Bitcoin loses some relative dominance, Ethereum regains voice, and altcoins start moving again. To turn this tremor into a real rebound, it will take more than a promising chart. It will require a durable rotation, capable of supporting the return of altcoins beyond just a few sessions of enthusiasm.
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Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.