Japan-based crypto research firm XWIN Research has outlined a divide between Bitcoin and Ethereum.
It argues that April’s market rebound was driven largely by Bitcoin, not a broad crypto recovery.
Key Points
- Bitcoin led April’s crypto rebound, gaining 11.85% as Ethereum lagged with a 7.28% rise.
- XWIN says Bitcoin’s rally was due to strong U.S. institutional demand and ETF inflows.
- Ethereum showed weaker demand, with price gains mainly driven by reduced selling pressure.
- The report suggests capital is becoming more selective, favoring assets with clearer demand signals.
Bitcoin Drives the Rebound
According to the report, Bitcoin climbed from $68,219 to $76,306 in April, marking an 11.85% gain and briefly testing $79,500. In contrast, Ethereum rose from $2,103 to $2,256, a smaller 7.28% increase, with a weaker peak near $2,466.
This gap, XWIN says, reflects bigger structural differences rather than simple price performance. Bitcoin’s recovery was backed by strong demand, particularly from U.S. institutional investors.
A key indicator, the Coinbase Premium, moved back into positive territory, confirming renewed buying interest, including flows linked to spot ETFs.
For instance, Michael Saylor’s Strategy acquired over 56,200 BTC in April, investing over $4 billion in the market. Moreover, Bitcoin ETFs, led by BlackRock, invested over $1.197 billion in BTC in the same month and have already bought $1.16 billion in May.
Meanwhile, Bitcoin exchange netflows showed consistent outflows, suggesting investors were moving assets off exchanges and reducing sell pressure. Together, these trends point to a market where demand is rising while available supply is tightening.
Ethereum Shows Supply-Driven Movement
Ethereum, on the other hand, did not display the same level of institutional demand. Its Coinbase Premium remained relatively flat, indicating weaker capital inflows compared to Bitcoin.
Instead, ETH’s price movement appeared more tied to shifts in exchange supply. Periods of reduced selling pressure helped lift prices, but without strong underlying demand, the rally lacked the same conviction seen in Bitcoin.
XWIN described Ethereum’s structure as more reactive, driven by changes in supply rather than active accumulation. Notably, Ethereum ETFs only attracted $356 million in inflows in April compared to nearly $3 billion for Bitcoin ETFs.
Shift Toward Selective Capital Allocation
The report concludes that April’s rebound signals the start of a more selective phase in the crypto market. Rather than moving in unison, capital is increasingly flowing toward assets with clearer demand signals.
Bitcoin, in this case, is being actively accumulated, while Ethereum’s gains have largely come from a slowdown in selling activity.
XWIN notes that broader altcoin participation may depend on Ethereum showing sustained spot demand similar to Bitcoin. Until that happens, Bitcoin’s market dominance could continue.
In this view, April was not just a recovery period but the beginning of a structural shift in how capital moves across the crypto market.
At press time, Bitcoin is now trading above $81,500, one of its highest prices since January.
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