Main page Opinion, Bitcoin, Ethereum

In 2023, top cryptos have been far from their all-time highs, and usually, many of the coins with the biggest market caps move in sync. But this trend shifted in October when Bitcoin (BTC) started to rise, and Ethereum (ETH) took a dip. Let's explore what could cause such changes and what might happen next.

First, let’s examine what's been going on with Ethereum in the last three months. The ETH/USD pair has dropped nearly 15% during this period.

You can say that Bitcoin hasn’t been a top dog either. Indeed, this can be the case, as BTC has remained in the red for the past three months.

But a closer look at the charts tells a different story. Bitcoin appears to be in a relatively strong position at the moment, while Ethereum is not faring quite as well.

Both cryptocurrencies are far from their peaks, but it seems like OG is currently the stronger player. Or, perhaps, Ethereum is showing signs of weakness. Probably, the truth lies somewhere in between.

Pay attention to the ETH trading volume, indicated below the price chart. It's clear that this indicator has been decreasing since the beginning of the year.

Traders are not so active in buying Ethereum, and even staking, which once used to be a rather attractive option. Ethereum staking offered nearly 4% in passive income. But have you seen the US treasury bonds yield lately? It’s now over 5%, which makes them a safer investment.

Additionally, other forms of activity related to Ethereum have declined. For example, when was the last time you heard about NFTs in a positive light? Yep, exactly.

Simultaneously, the demand for Bitcoin might be more stable or even increase. One of the possible reasons is the upcoming Bitcoin halving, scheduled for spring 2024. Traditionally, BTC tends to surge after this event, so investors might be buying coins in advance, driving up the price.

Another factor is gossip about the approval of the Bitcoin ETF soon. Some market participants are sure that the BTC price could skyrocket if this occurs. Even if it doesn't happen, Bitcoin's relationship with regulators appears to be more positive compared to other cryptocurrencies.

Does Ethereum have a trump card up its sleeve? It's hard to say, but company officials have hinted at potential integrations with AI technology in the short or long term. We're well aware of how much investors love AI technologies.

Read also:
Strawberry Cake Media Corp. © 2024 Cookie Policy Editorial team Archive

ihodl.com is an illustrated edition about cryptocurrencies and financial markets.
Every day we publish the best materials for everyone interested in economy.