Ether (ETH) flexes its muscles
After three lean years, ether finally seems to be waking up. The number two crypto market underperformed for years, but is now showing muscle. This puts not only ETH itself in a new light, but also the broader altcoin market. Also in this edition of Market News, an eye on a lurking threat: quantum computers. What if one day they really can break Bitcoin's cryptography?
Market update
Over the past three years, ETH consistently underperformed compared to BTC. Suppose you had bought €1,000 worth of bitcoin on April 21, 2022: three years later, that would have been worth €2,034. If you had bought €1,000 worth of ether, only €492 would be left. BTC doubled while ETH halved. A fourfold difference.
We didn’t choose that date by accident. The ratio between ETH and BTC is measured by the ETH/BTC price. In 2021 and 2022, it hovered roughly between 0.06 and 0.08. Over the next three years, this ratio steadily declined to a low of 0.018 on April 21, 2025.
Over the past three months, the price of ether rose by 160%, climbing from €1,255 to €3,250. In the same period, Bitcoin rose by "only" 60%. For the first time in years, ETH significantly outperformed BTC. The ETH/BTC ratio climbed above 0.03 and, for the first time in years, recorded a weekly close above the dominant average.
This is a strong signal for the entire altcoin market. In the past, we've seen altcoins perform best during periods when ether was gaining on bitcoin. However, the recovery is still in its early stages. For greater confirmation, we would want to see a weekly close for ETH above $4,100 and a further decline in Bitcoin dominance.
Featured
Quantum threat: a looming problem enters the conversation
What if the biggest threat to Bitcoin has been right under our noses for years—and we've done nothing about it simply because it doesn't feel that urgent?
The first Quantum Bitcoin Summit was recently held in San Francisco, where a proposal by Bitcoin developer Jameson Lopp took center stage. His message? Bitcoin must start preparing now for a future in which quantum computers can break through its current security.
It’s unclear when such computers will become operational. Some researchers speak of a few years; others believe it may take decades. Still, according to Lopp, it’s high time to raise awareness. Unlike previous threats—such as censorship, regulation, or bugs—this type of attack strikes at the very heart of Bitcoin: the cryptography that protects wallets.
In his proposal, Lopp presents a phased approach:
First, sending to vulnerable addresses is discouraged.
Next, a soft fork would freeze coins that have not yet been moved to a 'quantum-safe' address.
And optionally, a recovery mechanism would be introduced for those coins, for example using zero-knowledge proofs.
Controversial? Absolutely. The idea of 'freezing' bitcoins—even if they belonged to Satoshi himself—would go against the very foundation of Bitcoin. But according to Lopp, the threat is so fundamentally different that the response must be equally groundbreaking..
Approximately 25% of all bitcoins are held in addresses with publicly visible public keys. These are vulnerable. And attackers with sufficient qubits, if they’re smart, won’t strike all at once, but quietly—by slowly draining the vulnerable wallets over the course of months without leaving any trace. A so-called “Q-Day” would only be recognized in hindsight.
So, is quantum computing a threat? Yes. But should we panic now? Not quite. The greatest danger—doing nothing—has been preemptively addressed by Lopp. The discussion has begun, and the ball is rolling. This might very well be the beginning of Bitcoin’s next major upgrade.
In other news
Ethereum ETFs are attracting record amounts of capital. In July alone, $3.2 billion flowed into the funds, with BlackRock’s ETHA leading the way. Last week, ETH even matched BTC's daily inflow. Currently, more than 10% of ETH trading volume comes through ETFs. BlackRock has requested permission to stake the ETH purchased by the fund—potentially offering investors additional returns.
Trump wants to open up 401(k) retirement plans to crypto. According to the Financial Times, he is working on an executive order that would allow retirement funds to be invested in alternative assets such as bitcoin, gold, and private equity. A total of $9 trillion is involved. The plan would direct regulators to remove legal barriers that currently prevent such investments.
Bank of America wants to launch its own stablecoin. CEO Brian Moynihan confirmed this while reviewing the figures for the second quarter of this year. The infrastructure is in place, and deals with partners are ready to go. Now that Trump has officially given the green light, BofA is set to compete with JPMorgan and Citi for the first bank-issued stablecoin.
Cantor Fitzgerald plans to buy $4 billion worth of bitcoin through a SPAC deal with Adam Back. The crypto pioneer behind Hashcash is contributing 30,000 BTC—over $3 billion—in exchange for shares in BSTR Holdings. On top of that, Cantor aims to raise another $800 million for additional purchases. The strategy is simple: stockpile bitcoin via the stock market, just like Michael Saylor. Combined with an earlier deal involving SoftBank and Tether, Cantor’s total bitcoin investment this year could reach as much as $10 billion.
Satoshi Radio: In the latest episode of Satoshi Radio, you'll get a comprehensive update on Bitcoin's new record high. It peaked well over $120,000. You'll also get a tour of last week's news, including the unexpectedly small US bitcoin reserve, pending legislative proposals, and the position of Fed Chairman Jerome Powell, which is threatened.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.