Wang Feng Explains Why Bitcoin Flows Follow Ethereum Rallies: The Short-Term Illusion vs Long-Term Reality

BlockBeats reported insights from Wang Feng, founder of Blueport Interactive, who broke down the complex relationship between Ethereum and Bitcoin in today’s market dynamics. According to Wang Feng’s analysis, the current cycle reveals a pattern that repeats throughout crypto market history.

The Narrative Timing Creates Temporary Advantages

The recent momentum shift favoring ETH over BTC stems from what Wang Feng describes as a “narrative rhythm” divergence. Different market cycles amplify different assets—when one story captures investor attention, capital rotates accordingly. However, Wang Feng emphasizes that this window of opportunity carries timing challenges. Most investors struggle to reposition their portfolios quickly enough to capitalize on these narrative shifts before the tide turns.

Historical Cycles Show the Pattern

Wang Feng points to historical precedent to support his thesis. During the 2017 ICO boom and the 2020 DeFi explosion, Ethereum’s narrative dominance temporarily overshadowed Bitcoin. Yet in both cycles, Bitcoin ultimately recaptured market focus. The key insight: ETH functions as a leverage play on broader market sentiment, while BTC serves as the system’s foundational anchor.

Why ETH and BTC Are Not Competing, They’re Complementary

Rather than viewing these assets as competitors, Wang Feng argues they should be understood as interconnected instruments. Both tap into the same macro funding pools, benefit from identical regulatory catalysts, and follow similar market capitalization growth trajectories. ETH amplifies Bitcoin’s movements—when BTC gains strength, ETH typically delivers magnified returns. This β amplification effect means Ethereum trades as a leveraged proxy of Bitcoin’s direction.

The Inevitable Capital Rotation

Wang Feng’s core prediction: institutional capital and large funds will inevitably rotate back to Bitcoin to crystallize gains. The historical record supports this. Each time Ethereum led market sentiment during a bull cycle, the ultimate profit-taking flowed through Bitcoin’s dominance. ETH captures the volatility premium and narrative excitement; BTC provides the stability and exit liquidity. Understanding this cycle is critical for timing market transitions effectively.

The takeaway from Wang Feng’s analysis—treat Ethereum as Bitcoin’s leverage tool, not its replacement, and watch for when large funds begin repositioning toward BTC for the cycle’s conclusion.