Ethereum Surges as Bitcoin Nears 'Crunch Time'

Bitcoin (BTC) analyst Benjamin Cowen warns that 'crunch time' is approaching for major cryptocurrencies as Ethereum (ETH) wallet activity has reached its highest level since March.

Cowen said Bitcoin follows a predictable pattern in midterm years: a low forms in summer, volatility decreases through August and September, and then something happens in late fall that wakes the market up and starts the next bull run. He pointed out that social interest is low, with Bitcoin's social risk reading at 0.2 today, similar to its level in August 2018 when it was double this time four years ago.

Cowen expects one more leg down before the bull market begins, with October as the most likely month for the cycle low. On-chain indicators like the MVRV Z-score have not yet reset to levels that historically mark major bottoms.

Ethereum wallet activity has indeed exploded, according to Santiment, which flagged 989,500 active addresses in 24 hours, its highest daily activity since March, while price holds steady near $1,870. This increase is attributed to ETF inflows, Robinhood's Ethereum-settled activity, and the growing attention towards stablecoins, real-world assets, and tokenized assets as they pull users back to Ethereum.