Bitcoin, Solana Hit New Cycle Highs Against Ether as Trump Edges Closer to U.S. Presidency

As an analyst with over two decades of experience in financial markets, I have witnessed countless market cycles and trends. The latest surge in Bitcoin and other cryptocurrencies is no exception to my keen interest.

Bitcoin’s price soared to a record peak of over $75,000 when it appeared that former President Donald Trump might secure another term in office in the United States. At the moment, it is being traded around $74,000 on significant cryptocurrency platforms.

The election outcome served as the catalyst for bitcoin to surpass its March record highs, and the U.S. stock market’s opening might further drive the top cryptocurrency by market value towards even more impressive peaks.

During Donald Trump’s presidency, the cryptocurrency sector emerged as a major success story. The overall market capitalization peaked at an impressive $2.45 trillion, marking the highest figure since June, as indicated by data from TradingView’s TOTAL metric.

ETH/BTC ratio slumps

The comparison that shows Ether’s (ETH) price performance in relation to Bitcoin has reached its lowest point since April 2021, indicating a potential decrease in investor interest for the second largest digital currency globally.

The ether-bitcoin trading pair fell under 0.035 early Wednesday, extending year-to-date losses to more than 34%. Although colloquially called a ratio, ETH/BTC is simply the trading pair of ether against bitcoin on crypto exchanges, which attracts hundreds of millions in daily volumes.

If the value goes up, it suggests that Ether is outperforming Bitcoin, meaning it’s doing better. This rise makes traders think that investing in Ethereum and riskier assets could be advantageous. Conversely, if the price decreases, it shows a preference for Bitcoin and blockchain systems other than Ethereum.

Over the last five years, the ratio of ETH to BTC value has increased significantly, starting at 0.02 and peaking at over 0.08 in early 2022. This means that Ether’s worth quadrupled compared to Bitcoin at that time. However, since then, it has been on a downward trend. Despite Bitcoin hitting an all-time high, Ether hasn’t managed to surpass its 2021 peak and is currently 46% lower than its highest point.

So far this year, Bitcoin has yielded more than 75% back to its investors, whereas Ether investors have seen a return of slightly over 14%, based on the latest figures from MarketWatch.

Furthermore, Bitcoin’s market value neared $1.5 trillion at its peak and has since expanded, consistently outperforming Ethereum. The gap in their respective market values peaked at an unprecedented $1.16 trillion, a figure that mirrored the ETH/BTC ratio establishing new record lows.

Solana’s another big winner

As an analyst, I’m observing a significant surge in Solana (SOL) over the last 24 hours, with a 10% increase. Notably, SOL has also reached new cycle highs relative to Ether at 0.072. While Solana’s market cap dominance is approaching 3.70%, it hasn’t yet managed to break through to new all-time highs.

Profit-taking continues

Bitcoin has been steadily increasing in value since September, continued its ascent through October, and is still rising into November. Recent research by CoinDesk suggests that there has been significant profit-taking over the past month. As bitcoin reached new record highs, CoinDesk observed a substantial amount of investors cashing out, approximately $1.5 billion, which seems to have contributed to bitcoin’s slight dip from its all-time highs.