- ETH has dropped to its weakest in almost four years against BTC.
BTC is trading at around $63,000, while ETH is trading at around $2,500 at press time.
As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. Recently, I find myself intrigued by the dynamics between Bitcoin (BTC) and Ethereum (ETH).
Over the last several months, the prices of Bitcoins (BTC) and Ethereums (ETH) have experienced considerable fluctuations, occasionally surging to unprecedented levels.
Nevertheless, while there are some similarities, current evidence indicates that Ethereum (ETH) is depreciating compared to Bitcoin (BTC). Furthermore, the trading community has shown distinct preferences regarding the introduction of ETFs, leaning more towards Bitcoin rather than Ethereum.
Ethereum trades at a 40-month low against Bitcoin
Based on current figures from IntoTheBlock, Ethereum’s value relative to Bitcoin is at its lowest point in approximately 40 months. A look at the ETH/BTC pairing on Coinbase reveals a noticeable downtrend, as Ethereum trades at 0.04044 Bitcoins, marking a decrease of 0.25%.
Additionally, the 50-day moving average (represented in yellow) sits beneath the 200-day moving average (in blue). This situation is known as a “Death Cross,” which is a bearish indicator suggesting a potential long-term decline.
The consistent drop in price, marked by fewer peak prices (lower highs) and minimum prices (lower lows), underscores the persistent vulnerability of Ethereum compared to Bitcoin.
Bitcoin strengthens against Ethereum
On Vantage, the Bitcoin-Ethereum pair indicates that Bitcoin has been dominating recently, currently valued at approximately 24.71 Ethereum. There’s a minor dip of 0.04%, yet the overall trajectory remains robustly bullish.
The key feature on the chart is the Golden Cross, where the 50-day moving average (yellow) has crossed above the 200-day moving average (blue), signaling a long-term upward trend.
The pattern in Bitcoin’s price movement supports its ongoing strength against Ethereum, as it consistently sets new record highs followed by successively higher bottoms, signifying Bitcoin’s persistent leadership.
ETF Flows: Bitcoin Outpaces Ethereum
ETF flows further highlight the contrasting market sentiment between the two assets. According to data from Spot on Chain, Bitcoin ETFs saw an inflow of around $92 million this week, compared to just $2.9 million for Ethereum.
In summary, Bitcoin ETFs saw a grand total of $397 million in accumulated investments over a period of five trading days, with four out of these five days experiencing positive investment flows. Conversely, Ethereum ETFs experienced negative overall investments amounting to -$26.2 million, with only two out of the five days witnessing inflows.
According to data from Soso Value, the overall net inflow of funds into U.S. spot Bitcoin ETFs remains positive, currently sitting at around $17.7 billion.
As a researcher, I’ve observed an interesting trend in the US market: The net outflow of funds for Ethereum Spot ETFs stands at approximately $607 million. This suggests that traders are leaning more towards Bitcoin over Ethereum, not only in terms of price trends but also in their investment decisions regarding these ETFs.
Read Ethereum (ETH) Price Prediction 2024-25
BTC continues to outperform ETH
To sum up, Ethereum is currently experiencing a setback compared to Bitcoin, as pessimistic trading patterns are prevailing in their pair. Additionally, the varying responses from the market towards their respective ETF proposals highlight Bitcoin’s present dominance and investors’ current inclination towards it.
With traders increasingly opting for Bitcoin ETFs, and the value of Bitcoin holding more weight compared to Ethereum in their combined ratio, it appears that Bitcoin’s positive trend may persist. Conversely, Ethereum seems to be grappling with difficulties as it attempts to regain its lost ground.
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2024-09-21 18:15