Finance

Bitcoin’s Sideways Dance: Is Ethereum Stealing the Spotlight From BTC?

Bitcoin consolidates as firms buy altcoins like ETH. Novogratz expects a BTC upswing later this year.

September 13, 2025, 9:17 AM

A hand holds a pen near a collection of Bitcoin coins and a financial chart on a table.

As the value of Bitcoin fluctuates, investors carefully consider their next move, charting their course with pen and paper. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Bitcoin is currently in a consolidation phase, trading sideways, primarily due to treasury companies increasing their focus on accumulating altcoins.

A growing number of companies are adding altcoins like Ethereum to their corporate treasuries, with firms such as BitMine, ETHZilla, and SharpLink making significant investments.

Ethereum’s appeal to corporate treasuries stems from its extensive use-cases in stablecoin transactions, DeFi applications, and the NFT ecosystem, leading it to be characterized as the “Wall Street token.”

The Story So Far

Bitcoin’s current consolidation phase is primarily due to a strategic shift by corporate treasuries, which are increasingly diversifying their digital asset holdings beyond Bitcoin to accumulate altcoins like Ethereum and Solana, driven by the broader utility and extensive use-cases these alternatives offer in areas such as decentralized finance, NFTs, and stablecoin transactions.

Why This Matters

The current sideways movement of Bitcoin’s price signals a significant shift in corporate treasury strategies, as companies increasingly diversify their digital asset holdings to include altcoins like Ethereum and Solana. This trend reflects a growing recognition of altcoins’ broader utility beyond just a store of value, with Ethereum, in particular, being valued for its extensive use-cases in DeFi and NFTs, suggesting a maturing market where various digital assets fulfill distinct corporate objectives.

Who Thinks What?

Mike Novogratz, CEO of Galaxy Digital, believes Bitcoin is in a consolidation phase due to treasury companies focusing on altcoins, but anticipates a BTC upswing by year-end.

Treasury companies like BitMine Immersion Technologies, ETHZilla, SharpLink, and Forward Industries are strategically accumulating altcoins such as Ethereum and Solana, diversifying their digital asset holdings beyond Bitcoin.

Jan van Eck, CEO of VanEck, characterizes Ethereum as the “Wall Street token” due to its extensive use-cases in areas like DeFi and NFTs, making it highly appealing to institutions.

Mike Novogratz, CEO of asset management firm Galaxy Digital, stated yesterday on CNBC’s Squawk Box that Bitcoin (BTC) is currently in a consolidation phase. This sideways movement is primarily attributed to an increasing focus by treasury companies on accumulating altcoins, particularly Ethereum (ETH), for their balance sheets. Bitcoin’s price action has remained range-bound despite a recent surge, trading approximately 7.4% below its all-time high of $124,128, recorded on August 14.

Bitcoin’s Consolidation and Future Outlook

Novogratz highlighted that Bitcoin has been trading sideways for the past month, suggesting that treasury firms are currently “taking their shot” with other digital assets. Despite this, he anticipates that BTC may experience another upswing towards the end of the year. Bitcoin is currently trading at $115,050, showing a 0.4% increase over the past 24 hours.

Corporate Shift Towards Altcoin Treasuries

Indeed, several companies have recently added altcoins like Ethereum to their corporate treasuries. BitMine Immersion Technologies, for instance, has emerged as a significant holder, reporting over 2.1 million ETH on its balance sheet, valued at nearly $9 billion. This trend underscores a growing corporate interest beyond just Bitcoin.

Other firms are also expanding their Ethereum holdings. ETHZilla recently disclosed ownership of more than 100,000 ETH, while Nasdaq-listed SharpLink increased its total Ethereum holdings to over 800,000 tokens. These movements indicate a strategic shift in how some companies are gaining exposure to digital assets.

Ethereum’s Appeal to Institutions

Ethereum’s appeal to corporate treasuries is multifaceted, largely due to its extensive use-cases beyond a simple store of value. ETH facilitates stablecoin transactions, powers decentralized finance (DeFi) applications, and is fundamental to the non-fungible token (NFT) ecosystem. These functionalities offer a broader utility compared to Bitcoin.

Jan van Eck, CEO of asset management firm VanEck, recently characterized ETH as the “Wall Street token,” citing its immense use-cases and competitive advantages. Further demonstrating this trend, Jack Ma-linked Yunfeng Financial invested $44 million in ETH, and Ether Machine raised $654 million worth of ETH in private financing earlier this month.

Diversification Beyond Ethereum

Beyond Ethereum, other altcoins are also attracting corporate attention. Solana (SOL) is gaining traction, with design and manufacturing firm Forward Industries announcing earlier this week that it had raised $1.65 billion in cash and stablecoins to launch a SOL-focused treasury strategy. This diversification suggests a broader acceptance of various digital assets in corporate portfolios.

While altcoins currently enjoy significant corporate interest and capital inflows, the market continues to monitor Bitcoin’s trajectory closely. A potential breakout from its current consolidation phase will likely signal a capital rotation back into BTC, influencing the broader cryptocurrency market dynamics.