Veteran Bitcoin (BTC) advocate Samson Mow is issuing a warning to Ethereum (ETH) investors amid a recent rally that has seen the second-largest crypto asset by market cap rise by more than 40 in a month.
Mow tells his 352,100 followers on the social media platform X that Ethereum could face a sell-off after printing substantial gains, believing that savvy investors will eventually trade their ETH holdings to BTC.
-->“Most ETH holders have a lot of BTC (initial coin offering/insiders), and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury companies).
Once they’ve gotten it high enough, they’ll dump their ETH, creating new generational bagholders, and then rotate the gains back into BTC.
No one wants ETH in the long run. Plan accordingly.“
The veteran Bitcoin advocate also says Bitcoin holders shouldn’t be “worried” after Ethereum bottomed out against Bitcoin in April to reverse a downtrend that started in December of 2021.
“Ethereum has always been a vehicle for those people to get more Bitcoin. It was true for the [Initial Coin Offering] ICO, and it’s true now.”
On the prospects of Ethereum rising above the all-time high price of just under $4,900, Mow says,
“It will be challenging for ETH to break all-time highs because the closer you reach that psychological level, the stronger the drive to sell. It’s the Bag-holder’s Dilemma (like the Prisoner’s Dilemma except with Sell/HODL).”
Ethereum is trading at $4,253 at time of writing, down by around 13 from the all-time high reached in November of 2021.
