Bitcoin Reasserts Dominance Over Ethereum as Trump Trade Spat Escalates
Ethereum climbed toward $5,000 this summer, but Bitcoin regained dominance amid rising U.S.-China trade tensions and global economic uncertainty. Although both cryptocurrencies dropped in dollar value, Bitcoin strengthened against Ethereum, with its value reaching nearly 30 ETH. Market volatility followed Chinese sanctions and U.S. tariff threats, boosting Bitcoin as a perceived hedge against currency devaluation. Analysts attribute Ethereum’s weaker recent performance to shifting macroeconomic narratives rather than its core fundamentals, which remain strong due to stablecoins, tokenization, and institutional interest. Historic market patterns show Bitcoin’s rallies often lead, followed by periods where Ethereum and other altcoins gain. However, some analysts remain skeptical about extended "altcoin seasons," believing only a few cryptocurrencies like Ethereum will see lasting adoption due to real-world financial applications. Ethereum’s volatility is expected to remain higher than Bitcoin’s, and any outperformance is likely temporary, but its technological role and potential for asset tokenization may still drive future growth.
