After ETH’s 45% Q1 losses, why Q2 could favor Ethereum over Bitcoin

As risk assets continue to track the 2025 cycle patterns, from weak gains to macro volatility around rate cuts and hefty liquidations, it’s important to follow these trends to get a sense of where the market might head next.

Looking specifically at Ethereum [ETH], one pattern stands out. 

So far, ETH has had a tough climb compared to Bitcoin [BTC]. ETH has delivered a 1.5× weaker performance, which has pushed the ETH/BTC ratio down by roughly 13%, extending losses from the 2025 rally.

Interestingly, this closely mirrors the Q1 2025 pattern.

Looking at the numbers, Bitcoin’s ROI landed at -11.8%, nearly 4× stronger than Ethereum’s -45.4%, while Ethereum dominance [ETH.D] ended the quarter down 33%, about 3× weaker than BTC.D’s 12% decline.

However, the story shifted in Q2. Ethereum bounced back strongly, with ETH dominance closing 2× stronger than Bitcoin. By the end of the quarter, ETH’s ROI was roughly 1.5× ahead of BTC’s, signaling a clear rebound.

Naturally, this raises the question: If Ethereum continues to see strong on-chain accumulation and resilient network fundamentals, even amid a risk-off market, could it be setting the stage for another Q2-style outperformance against Bitcoin?

What sets the base for Ethereum’s Q2 performance?

Despite the FUD, BitMine’s conviction in Ethereum remains unwavering. 

Recent data shows BitMine purchased an additional 45,759 ETH, bringing its total holdings to 4.37 million ETH. This clearly signals that BitMine is betting on Ethereum’s future, backed by strong network fundamentals. 

For instance, major financial institutions like BlackRock and J.P. Morgan are building blockchain-based versions of traditional payment systems on Ethereum.

As a result, the market cap of RWAs on Ethereum has surpassed $15 billion, up roughly 200% year-over-year.

This shows that Ethereum’s recent weak performance is more market-driven than a loss of conviction in the network itself.

That divergence is meaningful, as it points to the current pullback being a typical “weak hands” shakeout rather than a fundamental breakdown.

Because of this, another Q2 outperformance doesn’t seem far-fetched. 

In fact, this divergence is helping lay a solid foundation, backed by institutional support, highlighting why ETH could rebound strongly against BTC if the market swings back to a risk-on environment.

Final Summary

• BitMine added 45,759 ETH, bringing total holdings to 4.37 million ETH, signaling strong confidence in Ethereum’s fundamentals.
• Major institutions like BlackRock and J.P. Morgan are building on Ethereum, with RWAs surpassing $15 billion, supporting a potential Q2 rebound vs. BTC.