Samson Mow Warns of “Bagholder’s Dilemma” as ETH Approaches Key Levels
Ethereum’s rapid climb past $4,300 has reignited a long-standing debate among crypto market watchers: will ETH holders stay the course, or rotate their profits back into Bitcoin? Bitcoin maximalist Samson Mow believes the latter is inevitable, suggesting that historical patterns and investor psychology could play a decisive role.
“Most ETH holders already have significant Bitcoin holdings,” Mow said, adding that many have been rotating BTC into ETH to fuel the rally. According to him, once Ether reaches attractive profit-taking levels, “they’ll dump their ETH, creating new generational bagholders, and rotate the gains back into BTC.”
Mow also warned of what he calls the “Bagholder’s Dilemma”, where the closer an asset gets to its all-time high, the stronger the selling pressure becomes. “No one wants ETH in the long run,” he stated.
However, not all experts share this view. Anthony Sassano, a prominent Ethereum advocate, dismissed the comments as outdated “Bitcoin maxi” thinking, calling it bullish for ETH sentiment. Meanwhile, investor Ted Pillows suggested a more cyclical outcome — ETH could hit new record highs, trigger a short altcoin rally, and then see funds flow back into Bitcoin before another wave returns to Ethereum and other alts.
Market data supports the notion of shifting capital flows. The ETH/BTC ratio has rebounded sharply to 0.036 from a multi-year low of 0.018 in April, signaling relative strength in Ethereum. Bitcoin dominance has also dropped by 10% since late June, indicating broader rotation into altcoins.
Institutional activity has further fueled Ether’s momentum. “Innovative yield farming and lending strategies, coupled with institutional reserve plays, are driving users and liquidity back into DeFi platforms,” noted Nick Ruck, director at LVRG Research.
With ETH’s highest weekly close since 2021 and prices now only 12% below their all-time high of $4,878, traders are watching closely to see whether Mow’s prediction of a mass rotation into Bitcoin comes true — or if Ethereum can defy past cycles and extend its lead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.