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Ethereum Surge Outpaces Bitcoin as Institutional Inflows Jump 138% in 2025

29 October 2025 at 14:00

This article was first published on The Bit Journal. Ethereum Surge sees the world’s second-largest cryptocurrency rapidly outpacing Bitcoin (BTC), as institutional investors increasingly shift their focus toward the leading smart contract platform dominating the digital asset landscape.

The institutional fund holdings in Ethereum have increased by an astounding 138% over the last year, making nearly four times the rate of growth of Bitcoin, indicating a significant change in market sentiment, and driving a great Ethereum surge in the global markets.

Ethereum Surge Fueled by Institutional Inflows

Once seen as merely an “alternative play” to Bitcoin, Ethereum is now stepping confidently out of Bitcoin’s shadow. Recent fund data shows that Ethereum holdings have soared to approximately 6.8 million Ethereum, which is mostly due to spot ETF inflows, enticing staking yields, and the increasing dominance of Ethereum throughout DeFi and asset tokenization.

Such institutional interest has brought additional momentum to the current Ethereum surge which has made it a dominant figure in the next crypto cycle.

Ethereum Surge Fueled by Institutional Inflows

Bitcoin’s Momentum Slows Amid Ethereum Surge

Conversely, Bitcoin still maintains its conventional purpose of a reserve asset of institutions, as there is a consistent though modest increase of 36% in the number of funds held of 1.3 million BTC.

As the number of institutional funds entering Bitcoin grows, it is slower than all other indices and may signify a slowdown in momentum, but Ethereum’s explosion signifies that investors are more willing to embrace growth and innovation.

Bitcoin’s Momentum Slows Amid Ethereum Surge

Altcoin Market Signals Imminent Capital Rotation

Ethereum is not however the only altcoin that is gaining institutional momentum. The market first indications suggest that the long awaited altcoin rotation is possible to be already in action.

As Joao Wedson, the CEO of Alphractal, argues, the existing configuration is very similar to past crypto market cycles, where Bitcoin gains predominance only to see a dramatic shift in capitals to altcoins, usually due to a round of Ethereum surge and a fresh wave of market enthusiasm.

Altcoins Season Index shows the strongest momentum for BTC!
However, I see it as strategic to start accumulating altcoins now, anticipating the upcoming rotation from BTC to Altcoins.
Focus mainly on newer altcoins — history keeps repeating itself!

Charts: @Alphractal pic.twitter.com/kE5Ve8PFVd

— Joao Wedson (@joao_wedson) October 27, 2025

Wedson pointed out that only four of the 55 trailed altcoins have shown more performance in the last 60 days than Bitcoin. However, such a narrow performance is typically followed by a wide-ranging recovery in risk appetite a traditional indication of early accumulation.

Ethereum Expansion Fuels Institutional Altcoin Growth

This period of accumulation, analysts believe, is the point where newer altcoins quietly bottom, creating the next step of the rotation. Some of the tokens like Synthetix (SNX) and Binance Coin (BNB) have already started recording an increase in relative returns, which indicated that early-cycle measures are strengthening, in part with the broader Ethereum surge throughout institutional portfolios.

This trend is also supported by historical data. A long-term comparative chart of the altcoins versus Bitcoin reveals that altcoin booms have traditionally followed Bitcoin booms, in both the 2017 and 2021 cycles.

This keeps me awake at night

If this trend line extends into 2025/6 we should see the biggest alt season of all time

While some believe altcoins will never compete with Bitcoin again

I see potential for the biggest liquidity rotation of all time pic.twitter.com/Rqe3XzHmxG

— EllioTrades (@elliotrades) October 27, 2025

Ranging into 2025, technical charts are once again showing a multi-year wedge breakout in various altcoins a pattern that has heretofore occurred before massive rallies. Should this trend continue to be true, the next market turn may already be shaping up, and the Ethereum surge may be at the forefront and reestablishing the balance of power in the worldwide crypto market.

Conclusion

As 2025 approaches, Ethereum’s dominance and the growing institutional shift toward altcoins signal a transformative phase for the crypto market. If historical patterns hold true, Ethereum could spearhead the next major rotation, setting the stage for a broader altcoin rally and redefining the digital asset landscape worldwide.

Summary

Ethereum holdings jump 138%, outpacing Bitcoin’s 36% growth.
Institutional inflows and DeFi adoption drive Ethereum’s surge.
Bitcoin stays a reserve asset, but momentum slows.
Analysts foresee altcoin rotation led by Ethereum in 2025.

Glossary of Key Terms

Ethereum (ETH): Smart contract platform powering DeFi and tokenization.

Altcoin: Any crypto other than Bitcoin, like ETH or BNB.

Institutional Inflows: Large-scale crypto investments from funds or corporations.

Spot ETF: Fund tracking a crypto’s price without direct ownership.

Staking Yields: Rewards for locking tokens on proof-of-stake networks.

DeFi: Blockchain-based financial system without intermediaries.

Altcoin Rotation: Shift of capital from Bitcoin to altcoins.

Accumulation Phase: Period when investors buy before market uptrend.

Frequently Asked Questions about Ethereum Surge

1. Why is Ethereum rising faster than Bitcoin?

Institutional investors favor Ethereum for DeFi and ETF growth.

2. What fuels Ethereum’s demand?

Staking rewards and its role in tokenization.

3. Is Bitcoin slowing down?

Yes, its growth lags behind Ethereum’s surge.

4. What’s next for altcoins?

Analysts expect an altcoin rally led by Ethereum.

Bitcoin Surges as U.S.-China Trade Breakthrough Sparks Market Rally

The Bit Journal

By:Haider Ali

28 October 2025 at 21:00

This article was first published on The Bit Journal. Bitcoin surged past $116,000 on Monday morning after U.S. Treasury Secretary Scott Bessent announced a “very substantial framework” for a trade agreement between Washington and Beijing.

Although a video of 79-year-old President Donald Trump dancing when he landed in Malaysia caught social media attention throughout the weekend, it was the words of Bessent that led to the optimistic reaction of global markets and investors, which boosted both stocks and cryptocurrencies.

Bitcoin Surge Mirrors Global Market Optimism

The Bitcoin surge was accompanied by an increase in traditional markets, as stocks also opened higher in Asia and the U.S, reflecting renewed optimism on reducing trade tensions between the two largest economies in the world.

Trump arrived in Kuala Lumpur on Sunday to pay a visit to the 47 th Association of Southeast Asian Nations (ASEAN) summit where his delegation is said to have assisted in brokering a peace deal between Cambodia and Thailand. Bessent, in the meantime, had signed various memorandums of understanding (MOUs) with Asian collaborators on rare earth mineral cooperation the strategic victory at a time of continued global realignments of supply chains.

U.S.-China Talks Spark Global Market Optimism

Nevertheless, the greatest achievement was the behind-the-scenes talks made by Bessent with the Chinese officials, which led to a tentative framework of trade that sought to end months of trade stalemate. Bessent said during an interview on NBC:

“We’ve created a framework for the two leaders to discuss on Thursday in Korea.I think it will be fantastic for U.S. citizens, for U.S. farmers, and for our country in general.”

The markets reacted quickly to the announcement. Bitcoin surge momentum drove the price to $114,217.55 at the time of writing, a 1.93 percent rise on the last day and 4.73 percent on the week, respectively. The cryptocurrency has been ranging between $113,015.30 and $116,273.31 since Sunday, which is one of the most stable and bullish weekends of the cryptocurrency in the last several months.

Bitcoin Surge Fuels Derivatives Market Expansion

Trade activity increased accordingly. The 24-hour trading volume of Bitcoin increased by 87.11 percent to reach $62.55 billion, and market capitalization increased by 1.95 percent. The crypto market dominance of the asset did not significantly change at 59.63, increasing by a small margin of 0.01%.

The enthusiasm was reflected in derivatives markets. According to Coinglass data, open interest in Bitcoin futures rose 3.05 to $76.18 billion and total liquidations reached $140.97 million. Bitcoin surge had a big impact on short positions where they sustained a loss of $123.30 million and long traders suffered a relatively small loss of $17.67 million.

Bitcoin Surge Momentum Builds Ahead APEC

The most recent Bitcoin boom, analysts argue, highlights the extent to which cryptocurrency markets are following macroeconomic trends and geopolitical changes. The recent surge of Bitcoin demonstrates how vulnerable the digital goods are to conventional market drivers such as trade policy and diplomatic co-operation, according to one Singapore-based trader.

The following week may be a key one. On Thursday, Donald Trump and Chinese President Xi Jinping will hold an initial meeting on the Asia Pacific Economic Cooperation (APEC) summit in South Korea where both the leaders are likely to agree on the specifics of the proposed trade setup.

Should the discussions lead to tangible gains, analysts foresee the potential further increase of the Bitcoin surge and even new all-time highs by early November.

Conclusion

As global markets ride a wave of optimism, all eyes now turn to Thursday’s APEC summit in South Korea. The anticipated Trump–Xi meeting could determine whether the current Bitcoin surge and stock market rally evolve into sustained economic momentum or fade with unmet expectations.

Summary

Bessent announced a major U.S.-China trade framework during Trump’s ASEAN visit.
The news sparked a Bitcoin surge past $116,000 and boosted global stocks.
Bitcoin trading volume jumped 87%, with futures and market cap rising.
Focus shifts to the APEC summit for Trump–Xi trade discussions.

Glossary of Key Terms

Bitcoin Surge: Rapid rise in Bitcoin’s price.

Scott Bessent: U.S. Treasury Secretary behind the trade deal news.

Trade Framework: Initial U.S.-China trade agreement plan.

Donald Trump: U.S. President attending ASEAN and APEC summits.

U.S.-China Trade Deal: Agreement easing economic tensions.

ASEAN Summit: Meeting of Southeast Asian nations.

APEC Summit: Asia-Pacific trade summit for U.S.-China talks.

Derivatives Market: Trading based on asset value changes.

Open Interest: Active futures contracts in the market.

Geopolitical Factors: Global political events affecting markets.

Frequently Asked Questions the Bitcoin Surge

1. Why did Bitcoin surge?

It rose after the U.S. announced a major trade framework with China.

2. What did Trump do in Malaysia?

He attended the ASEAN summit and helped broker a peace deal.

3. How did markets react?

Stocks and crypto surged on renewed trade optimism.

4. What’s next for Bitcoin?

All eyes are on the APEC summit for further trade progress.