While Ethereum may have captured the headlines, the spotlight, and the investment flow (to some extent), the current market cycle is all about gathering and sustaining volatility and momentum. When it comes to Bitcoin, this may be the main reason why Bitcoin experts are more bullish than Ethereum. In fact, even as Ethereum continues to emerge as an alternative to Bitcoin, the fees for the Ethereum network remain high.
Thus, Ethereum maximalists based on technological research can soon realize that market discovery can become a challenge as network fees are high. Since the estimates for the same are yet to cross the September 2020 mark, this will be a long-term obstacle for the acceptance of Ethereum. Just the price can be taken thus far by depending on the investment flow in DeFi and the transaction rate in Ethereum.
By comparison, bitcoin options worth $3.7 billion are expected to expire on 29 January, based on data from bybt.com. According to some on-chain observers, Bitcoin can attempt to pass $41,000 again just before it expires. Moreover, another justification to expect a rise in rates by the end of January is that Bitcoin calls are stronger than derivative exchanges. This is yet another indication that the week may be a bullish one for Bitcoin.
And like Bitcoin hit its ATH before a decline occurred, there could be a drop in Ethereum’s market surge as Bitcoin’s price grows ahead. Institutional purchasing and demand are currently at their highest in Bitcoin, but the same cannot be said for Ethereum.
Experts are aware that Ethereum’s rally also depends on Bitcoin’s price action due to the relatively high correlation in the current market cycle. The views of both macro and on-chain analysts are bullish for Bitcoin in the short-term. In fact, based on data from CoinMetrics, the percentage of active supply in the Ethereum network was 65.2%. This figure was much higher than Bitcoin’s which had a percentage active supply of 42.3%, at press time.
Bitcoin’s price has gone from $10,000 to $30,000 over a course of three months and the run to more price exploration and yet another ATH above $41,000 could arrive earlier than anticipated.
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