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Ethereum may be on track to outperform Bitcoin in the coming months, according to Galaxy Digital CEO Michael Novogratz. In a recent interview with CNBC, Novogratz said institutional demand for Ethereum is accelerating, potentially driving its price beyond the key $4,000 level. This surge in interest, he believes, could trigger a supply shock and give Ether the edge over Bitcoin through the remainder of 2025.
Currently trading near $3,618, Ethereum is just 8.5% below the $4,000 threshold. According to Novogratz, once ETH crosses that resistance, it will enter “price discovery” mode — a market phase where price exploration occurs without historical benchmarks. “We feel kind of destined to at least knock on the $4,000 ceiling a few times,” Novogratz said, emphasizing Ethereum’s strong momentum.
This optimistic forecast comes amid growing interest from major institutional players. Novogratz highlighted recent large-scale ETH acquisitions by Sharplink Gaming and BitMine Immersion Technologies. BitMine now holds 566,776 ETH, valued at roughly $2.03 billion, while Sharplink owns around 360,807 ETH, worth approximately $1.29 billion. These firms are joining a wave of corporate entities viewing Ethereum not only as a valuable asset but also as a hedge against traditional market volatility.
In addition, Ether Machine, a new firm preparing for a Nasdaq listing under the ticker “ETHM,” is expected to manage over 400,000 ETH worth more than $1.5 billion at start. Novogratz believes these aggressive institutional moves reflect a broader trend that could further limit the available ETH supply in the open market.
“They are raising capital every day and buying Ether,” Novogratz noted. He sees these inflows as a significant factor contributing to Ethereum’s potential outperformance. Notably, this bullish outlook is not limited to Novogratz. BitMEX co-founder Arthur Hayes recently predicted Ethereum could surge to $10,000 by the end of the year.
Beyond institutional buying, Ethereum is also gaining strength against Bitcoin in market metrics. Over the past 30 days, the ETH/BTC ratio has climbed by 36.53%, signaling that Ethereum is gaining traction in comparison to Bitcoin. At the time of reporting, the ETH/BTC ratio stood at 0.03116, according to data from TradingView.
Despite favoring Ethereum’s short-term prospects, Novogratz still maintains a bullish view on Bitcoin. He suggested Bitcoin is also “destined to go higher,” with a potential price target of $150,000. “That seems a decent target just when I draw funny lines on my charts,” he said with a laugh, referencing his charting analysis.
Still, Ethereum’s narrative appears to be gaining more momentum. Novogratz emphasized that ETH has a “really powerful” story, especially as it continues to evolve beyond just being a smart contract platform. With applications in DeFi, tokenization, and real-world asset management, Ethereum’s utility is increasingly being recognized by traditional finance institutions.
Furthermore, Ethereum’s transition to proof-of-stake and its reduced issuance rate following the Merge have also contributed to its growing appeal. Many analysts argue that ETH’s deflationary characteristics post-upgrade make it even more attractive as a long-term investment compared to Bitcoin’s fixed-supply model.
The weakening of fiat currencies like the yen, inflation concerns, and global economic uncertainty are all pushing institutions toward digital assets. Ethereum, with its expanding role in both the financial and tech sectors, stands to benefit significantly from this shift.
While the crypto market remains volatile and speculative predictions should be taken with caution, Ethereum’s current trajectory is hard to ignore. With massive institutional backing, improving fundamentals, and rising demand, ETH may soon break the $4,000 mark and outperform Bitcoin — at least in the near term.
As Novogratz puts it, the stage is set for Ethereum to not only test key resistance levels but to potentially reshape how institutional investors view digital assets beyond Bitcoin.
