As a seasoned crypto investor with a keen interest in following market trends and analyzing data, I find the current state of the ETH–BTC ratio concerning. The underperformance of Ethereum compared to Bitcoin is a trend that has been ongoing for some time now, as pointed out by crypto analyst Dippy.eth on social media X.
In the previous 24 hours, the digital asset market took investors by surprise as Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization, experienced a near-9% price surge. On the other hand, altcoins also recorded significant gains. However, Ether (ETH), the native cryptocurrency of Ethereum‘s blockchain network, showed lackluster growth with only a 3% increase in its value based on CoinMarketCap data.
I’ve noticed that the Ethereum to Bitcoin (ETH–BTC) ratio has hit a new low lately, which is the smallest it’s been since April 2021. This development has sparked intense discussions among crypto investors on social media platform X about its potential implications for the digital asset market.
ETH-BTC Ratio Follows Downtrend
Crypto analyst Dippy.eth has observed that the value of Ethereum relative to Bitcoin (ETH–BTC ratio) has been decreasing since point X. However, Dippy.eth anticipates that tokens built on the Ethereum network will surge if Bitcoin underperforms Ethereum in the upcoming period. The analyst is convinced that the ETH-BTC bottom is imminent, and following this bottoming out, altcoins are expected to experience a price increase as Bitcoin stabilizes at higher rates.
In contrast, Bitcoin is presently valued over $66,000, while Ether hovers below the $3,000 mark. According to TradingView’s data, the ETH–BTC ratio amounts to 0.04516 as of 8:35 a.m. ET on Thursday.
As a researcher examining cryptocurrency markets, I recently noticed some intriguing trends based on data from CoinMarketCap. Specifically, in the last 24 hours, Bitcoin’s trading volume experienced a substantial increase of 55.7%, whereas Ethereum’s volume only rose by 22%. Furthermore, Bitcoin’s market dominance continued to strengthen, accounting for approximately 54.7% of the total market share, while Ethereum trailed behind with just 15.1%.
As an analyst, I’ve observed a significant surge in public fascination with Bitcoin since the U.S. Securities and Exchange Commission (SEC) gave its green light to eleven Bitcoin spot exchange-traded funds (ETFs) in January this year. In contrast, Ether has faced a less favorable outlook due to the reduced prospects of an approved spot Ethereum ETF in the United States.
According to finance attorney Scott Johnsson’s remarks, the US Securities and Exchange Commission (SEC) requires compelling justifications to reject the proposed spot Ethereum ETFs submitted by major asset managers such as BlackRock and Fidelity.
According to the regulatory body’s perspective, ETH is classified as a security. Johnson, on the other hand, raises concerns that the application for an ETH-based ETF may have been incorrectly submitted as shares representing commodity trusts. Bloomberg senior analyst Eric Balchunas expressed his skepticism about the approval of an ETH ETF on social media, stating that the chances are very low.
In the first half of 2024, according to a report published by crypto exchange Coinbase, institutional investors are expected to continue showing strong interest in Bitcoin. This trend is driven in part by a significant number of traditional investors who have yet to enter the crypto market and are eager to do so.
The rising use of Layer 2 and Layer 3 blockchain networks is contributing significantly to the decreased attention towards Ethereum. As expressed by Polygon Labs CEO Marc Boiron, “L3s serve no other purpose than to transfer value from Ethereum to the L2s upon which the L3s are established.”
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2024-05-16 17:42