As an experienced analyst, I have closely observed the crypto market for several years, and the current deviation in the ETH/BTC ratio during the 2023-24 cycle is intriguing. Historically, Bitcoin has led the market during bear markets and early bull markets but lags during speculative phases of late-stage bulls. The ETH/BTC ratio serves as a crucial gauge for capital rotation in the market, with Ethereum acting as a bellwether asset for general risk appetite. However, this time around, we’ve seen an unexpected shift from these cyclical norms.
In the 2023-24 cryptocurrency market cycle, the relationship between Ethereum (ETH) and Bitcoin (BTC) has deviated significantly from past trends. This ETH/BTC ratio serves as a crucial signpost for investors, revealing shifts in capital allocation and risk preferences within the crypto sector.
As a researcher studying financial markets, I’ve observed an intriguing trend: despite the onset of a bull market towards the end of 2022, the ratio in question has surprisingly continued to deteriorate. Two primary factors seem to be contributing to this unexpected underperformance, based on expert analysis.
Unexpected ETH/BTC Ratio
As a crypto investor, I closely follow market trends and analysis from reliable sources. According to the recent joint report by Glassnode and CME Group, which I’ve read with great interest, the approval of spot Bitcoin ETFs in the US, expected in January 2024, has significantly increased buy-side pressure for Bitcoin. This means that institutional investors have been more actively purchasing Bitcoin in anticipation of this regulatory milestone.
As a researcher studying the blockchain landscape, I’ve observed that the fierce competition among Proof-of-Stake (PoS) chains has posed significant challenges to Ethereum’s leadership in several key areas. These include liquidity, attracting capital, user experience, and crucially, scalability.
As a researcher studying cryptocurrency markets, I’ve observed historically that Bitcoin, being the largest asset in this space, tends to set the tone during bear markets and early stages of bull markets. However, it often trails behind during more exuberant phases of late-stage bull markets. The Ethereum-to-Bitcoin ratio (ETH/BTC) is a valuable metric used by analysts to assess capital rotation, with Ethereum acting as a leading indicator for broader market risk appetite. Yet, an intriguing deviation from traditional patterns has emerged during the 2023-24 market cycle.
As a researcher studying the current trends in the cryptocurrency market, I’ve come across some interesting insights from Glassnode and CME Group. They believe that the bearish landscape may change with the introduction of spot Ethereum Exchange-Traded Funds (ETFs) in the US. These experts suggest that this development could potentially trigger a reversal of the current downtrend.
Several prominent investment firms, including VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton, and Bitwise, have recently filed updated proposals with the SEC to launch Ethereum-based exchange-traded funds (ETFs). The excitement among investors is palpable as they anticipate the approval of these ETFs.
The regulatory body has established July 8 as the cut-off date for companies to submit their revised plans. Confident industry insiders anticipate that the securities authority will likely endorse these drafts within approximately two weeks, given that most of the essential preparations have already been accomplished by issuers.
Important to mention: The SEC gave its approval for issuers’ 19b-4 applications for spot Ethereum ETFs on May 23rd. However, these issuers must still obtain approval for their S-1 filings before any trading activity can commence.
Ethereum On-Chain Metrics
Amidst improved sentiment, Ethereum has managed to retain its position above the $3,000 level.
In addition, recent figures indicate that the altcoin could be nearing its bottom based on the Ethereum Realized Cap, currently valued at $240 billion. With the market capitalization approaching or falling below this figure, numerous investors are feeling the pinch. Previous trends suggest that such a situation marks the later stages of a bear market, potentially setting the stage for an Ethereum price turnaround and bullish recovery.
Currently, Ethereum’s Market Value to Realized Value (MVRV) ratio indicates potential for profitability as it enters the recovery and bull market phase. This ratio began rising in mid-2023, which marked the late stages of a bear market, and now exceeds 1.0. Consequently, Ethereum investors on average are sitting on unrealized gains.
Read More
- W PREDICTION. W cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- AEVO PREDICTION. AEVO cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- REF PREDICTION. REF cryptocurrency
- CCT PREDICTION. CCT cryptocurrency
- ALCX PREDICTION. ALCX cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- KAS PREDICTION. KAS cryptocurrency
- SDEX PREDICTION. SDEX cryptocurrency
2024-07-10 10:31