Tom Lee’s conviction in Ethereum, heading into Q3, appears timely as the ETH/BTC ratio has opened the quarter with a nearly 5% rally. This follows BitMine Immersion adding 42,197 ETH to its holdings, now exceeding 5.74 million ETH, while Michael Saylor’s Strategy sold 3,588 BTC. The shift is partly attributed to rising odds of the CLARITY Act, now near 50% in prediction markets, which BitMine views as a major catalyst for Ethereum. However, Ethereum’s on-chain fundamentals have not caught up, with DeFi TVL still under $40 billion and stablecoin supply declining, while renewed Bitcoin buying from BlackRock adds pressure.
The ETH/BTC ratio has opened Q3 with a nearly 5% rally after three straight losing quarters, suggesting Ethereum is regaining relative strength against Bitcoin. BitMine Immersion recently added 42,197 ETH, taking its total holdings to more than 5.74 million ETH.
Meanwhile, Michael Saylor’s Strategy sold 3,588 BTC, setting up an interesting ETH versus BTC treasury debate. BitMine stated the improving odds of the CLARITY Act are the main reason behind its growing ETH position, noting prediction markets now put the odds of passage at around 50%. The company argues regulatory clarity would be a major catalyst for Ethereum as smart contract platforms become more integrated into everyday finance.
From BitMine’s perspective, the recent rise in the ETH/BTC ratio reflects the market assigning a higher probability to the CLARITY Act becoming law. Ethereum’s DeFi activity, however, remains well below previous highs, with total value locked still under $40 billion compared with around $89-90 billion before the October correction.
Additionally, Ethereum has started Q3 with its stablecoin supply down by more than $5 billion from roughly $160 billion. BlackRock has resumed buying Bitcoin, recording more than $209 million in net inflows after 11 straight days of selling, signaling renewed confidence in BTC.
Despite Strategy selling BTC, Bitcoin has continued to hold around $64k, suggesting BlackRock’s buying was enough to absorb the supply. Unless Ethereum’s DeFi metrics begin to recover, sustaining ETH/BTC’s early Q3 momentum could prove difficult as Bitcoin benefits from strong institutional demand.
