Amid a lackluster performance in the overall crypto market, discerning investors are shifting their focus towards Ethereum (ETH) and Bitcoin (BTC), the flagship cryptocurrencies. Notably, some are now actively debating and analyzing which of the two, ETH or BTC, holds greater investment potential.
One such investor is renowned analyst “ImNotTheWolf” who took to Twitter on Saturday to share his views expressing a preference for buying ETH over BTC.
The analyst outlined the reasons behind the decision, first emphasizing the narrowing window of opportunity for Bitcoin market cap dominance. He further shared the weekly chart showing that BTC dominance trend has hit a major downtrend resistance along the 55% level. According to him, a rejection along this trendline could see Bitcoins dominance recoil further in coming months, making Ethereum’s to rise.
“Bitcoin Dominance only has a spread of +4% before hitting my ‘target’ of a major downtrend resistance, vs a -30% difference to the downside (which is where I believe Ethereum will shine).” Wrote the pundit.
To further back his argument, the analyst speculated that Bitcoin’s ETF volume would be redirected into Ethereum, explaining, “The Bitcoin ETF was somewhat largely ‘priced in,’ and the quick move has already played out.”
He further predicted that savvy institutional players would use incoming institutional volume as ‘exit liquidity’ to secure profits on Bitcoin, shifting to larger positions in Ethereum. Additionally, he pointed to the anticipation of an spot Ethereum ETF and the upcoming launch of BLAST, an Ethereum layer-2 scaling network, suggesting that these events could usher in a new ‘DeFi Summer’ and ‘Altcoin Spring.’ Notably, major financial players like BlackRock and Fidelity have sought approval for spot Ethereum ETFs, signalling growing institutional interest in the second-largest cryptocurrency.
Moreover, the upcoming Dencun upgrade, set to bring enhanced scalability and reduced transactions costs is anticipated to further bolster Ethereum’s market position as well as the price of ETH.
That said, the pundit concluded by urging investors to make prudent investment choices, suggesting that this might be the last ‘cycle’ before a potentially prolonged bear market triggered by over-regulation.
“However, if you play your cards right… one cycle will be all you need to achieve financial freedom,” he noted.
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
