BitcoinBTCCryptocurrency EducationETHEthereumIndustry AnalysisLINKNewsSecurity

Ethereum tumbles against BTC – Can it make a comeback?

2 Mins read


  • ETH tapped its lowest price against BTC in the last 20 months.
  • The altcoin price may increase in Q1 due to its scheduled major upgrade.

AMBCrypto’s analysis of the ETH/BTC chart showed that the altcoin slipped to its lowest against Bitcoin [BTC] since May 2022.

According to data from TradingView, Ethereum’s [ETH] price fell against BTC  by 32.68% in the last 365 days. The last six months have not been any better as it dropped by 18.80% to 0.048 BTC.

The ETH/BTC chart on in the last five yearsThe ETH/BTC chart on in the last five years

Source: TradingView

Fake approval falls in ETH’s favor

A major reason for the development is the optimism around the Bitcoin ETF. Many market participants believe that the potential approval of the Bitcoin ETFs would be great for the market.

This has also been obvious in Bitcoin’s performance which had a 170% increase in 2023. But on the 9th of January, AMBCrypto reported how the U.S. SEC’s X account was compromised, leading the hackers to announce that all the spot ETFs had been approved.

This development sparked an increase in volatility as prices sharply went up and down within minutes. However, in all of that brouhaha, ETH gained.

At press time, ETH’s price was $2,380. This was after the value increased by 3.37% in the last 24 hours. Also, the ETH/BTC value changed and increased to 0.052 BTC— a 2.05% increase against the number one cryptocurrency.

However, On a Year-To-Date (YTD) basis, Bitcoin has outperformed Ethereum. While ETH had a 0.95% increase, Bitcoin boasted a 4.05% jump since the new year began. As it stands, ETH might not be able to dominate BTC in the short term,

This, however, depends on the SEC’s resolution. Before yesterday’s hack, some of the ETF applicants mentioned that the regulatory agency would disclose its decision on the 10th of December.

But recent events showed speculation that the resolution could again be delayed. If this happens, then the predictions that Bitcoin would price higher could go down the drain. However, if the SEC endorses them, ETH might find it hard to displace BTC’s dominance.

It’s not a Bitcoin-only show for Q1

Despite the projection, there is a chance that the altcoin will enjoy a dominant season in Q1 2024. One reason for this is that the Ethereum Dencun upgrade would be completed between January and February.

The upgrade aims to improve the security and scalability of the Ethereum blockchain. However, data obtained from Santiment showed that development activity on the blockchain had slowed down.

Development activity shows the rate at which a project is shipping out new features.

Ethereum development activity, ETH holders and BTC holdersEthereum development activity, ETH holders and BTC holders

Source: Santiment

So, the decline here, implies that there has not been a lot of polishing on Ethereum. However, as the Dencun Testnet draws nearer, the state might change for the better.

Realistic or not, here’s ETH’s market cap in BTC terms

Should this be the case, ETH’s value could be affected and possibly flip bullish. AMBCrypto also compared the amount of BTC and ETH holders.

As of this writing, ETH holders were 112.18 million. Bitcoin, on the other hand, had 52.64 million. This data showed that, despite ETH’s inconsistencies, a lot of players believe in its potential.

Source

1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Articles
Related posts
CryptoNews

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…
BNBCryptoNews

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…
CryptoNews

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥

Ailtra.ai will not disclose your account information to any 3rd parties.