Ethereum
Find the difference in cumulative returns? Why Ethereum is lagging behind Bitcoin in 2024 — TradingView News
Ethereum underperformed compared to Bitcoin in the current cycle, with the listing of Bitcoin spot ETFs proving to make the difference.
What happened: Bitcoin surpassed its all-time high last month, driven by significant demand for new investment vehicles that track its spot price. King Coin is up 47% year to date, according to BenzingaPro.
However, this trend did not hold true for Ethereum, which failed to approach its 2021 high this cycle anyway. Its gains since the start of the year have been relatively modest, at 32%.
According to on-chain analytics firm Glassnode, the cap achieved by short-term Bitcoin holders was almost comparable to the last bullish peak. On the other hand, Ethereum’s STH cap was less than half of the previous cycle.
There has been a growing divergence in performance between #Bitcoin And #Ethereum during the 2023-23 cycle so far.
This has manifested itself in weaker price performance for ETH, and can be explained by an overall lower capital turnover trend, especially compared to past cycles and… pic.twitter.com/WV1bXsbJkV
Simply put, short-term holders, or new market entrants, have shown much greater interest in Bitcoin, while new capital inflows into Ethereum have been lackluster.
Why is this important: The launch of new spot Bitcoin ETFs has made investing in cryptocurrencies easier, providing greater access to new market participants, Glassnode noted.
Ethereum, on the other hand, was still in waiting mode with a decision regarding its Spot ETF should arrive later this month.
British multinational bank Standard Chartered, which had initially expected approval by May, reversed his position Last month, Bloomberg ETF analyst Eric Balchunas also echoed last month’s pessimistic statement.
Great summary of all the action… which feels like one last push to try and get the SEC’s attention, although probably to no avail. We were pessimistic about the approval, even though it was cool and we’re pessimistic now too. https://t.co/xHcTW7FYiT
The status of Ethereum has become the main sticking point, with the SEC reportedly launching a covert operation to label the cryptocurrency safe.
If Ethereum is officially declared a security, it could negatively impact sentiment and investments around the coin, leading to a potential price collapse.
Price Action: Ethereum was trading at $3,015.99 at the time of writing, down 1.56% over the past 24 hours, according to data from Benzinga Pro.
Photo by Kanchanara on Unsplash
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