Bitcoin Nears Record as Treasury Investors Boost the Crypto Market

The cryptocurrency market saw a broad upswing over the weekend, led by Ether, which outperformed its digital-asset peers as interest from institutional investors and corporate treasuries continued to build momentum.

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On Monday morning in Asia, Ether climbed as much as 2.9% to surpass $4,300 its highest level since December 2021. Bitcoin also advanced, crossing the $121,000 mark and edging closer to its all-time high.

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The latest surge in Ether’s price comes amid growing attention from major market players. So far this year, more than $6.7 billion has flowed into the nine US-listed exchange-traded funds (ETFs) dedicated to Ether, highlighting a shift in investor allocation toward the second-largest cryptocurrency.

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Another contributing factor is the rise of digital-asset treasury companies publicly traded firms that pivot their strategies toward accumulating cryptocurrencies. According to data from strategicethreserve.xyz, these entities have amassed roughly $13 billion worth of Ether in 2024 alone.

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Market analysts point to a noticeable shift in sentiment favoring Ether over Bitcoin in recent months.

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“This is a massive positive sentiment change, fueled by strong spot ETF inflows, expanding adoption by corporate treasuries, and a supportive stablecoin backdrop,” said Sean McNulty, derivatives trading lead for APAC at digital-asset prime brokerage FalconX Ltd.

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The bullish outlook has also gained attention in political circles. Eric Trump, son of US President Donald Trump and a stakeholder in several digital-asset ventures, praised Ether’s rally in a post on X (formerly Twitter). Last week high-net-worth investors are being approached about a plan for World Liberty Financial a Trump family-backed venture to go public, holding its proprietary WLFI tokens as a core asset.

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The optimism surrounding Ether is also evident in the derivatives market. Data from Deribit shows the put-call ratio for Ether options at 0.39, indicating more bullish call positions relative to puts.

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Notably, the largest concentration of call options set to expire on December 26 carries a strike price of $6,000, underscoring traders’ confidence in further price gains over the next few months.

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Institutional demand for Ether has been steadily rising since the beginning of the year. The influx into spot Ether ETFs has provided a regulated pathway for large investors including hedge funds, pension funds, and asset managers to gain exposure without dealing directly with the complexities of crypto custody.

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Similarly, corporate treasury allocations into Ether mark a significant development in digital-asset adoption. Companies positioning Ether as part of their balance sheet strategy are not only diversifying their holdings but also signaling confidence in the cryptocurrency’s long-term value proposition, particularly as Ethereum’s network continues to support a wide range of decentralized applications and smart contracts.

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While Bitcoin remains the dominant player in terms of market capitalization, the recent capital rotation toward Ether suggests a growing belief that it could play a larger role in the next phase of the crypto cycle. Ether’s utility in decentralized finance (DeFi), non-fungible tokens (NFTs), and tokenized assets has strengthened its investment case for both speculative and strategic buyers.

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The combined influence of ETF inflows, corporate accumulation, and favorable market structure in options trading has created a confluence of factors that could sustain Ether’s outperformance at least in the near term.

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Market participants will be watching closely to see if Ether can maintain momentum above the $4,300 level and push toward the psychologically important $5,000 mark. If the derivatives market positioning is any guide, some traders are already eyeing $6,000 as a possible year-end target.

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For now, the crypto rally appears to have fresh legs, with Ether at the forefront supported by deep-pocketed institutional buyers, strategic treasury allocations, and increasingly bullish sentiment across spot and derivatives markets.

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