As Bitcoin’s momentum slows, Ethereum is emerging as the new focus for crypto investors. Over the past 24 hours, Ethereum (ETH) saw a 4% gain, while Bitcoin (BTC) experienced a slight decline of 1.5%, dipping below $95,000 on Monday. This shift marks a pivotal moment in the market, as Ethereum outperformed the CoinDesk 20 Index, which gained only 0.5% during the same period.
This rotation of capital comes after Bitcoin’s surge lost steam, following its rapid rise post-Donald Trump’s election victory. As traders recalibrate, they are turning their attention to smaller cryptocurrencies, with the ETH/BTC ratio showing a noticeable recovery after hitting its lowest point since March 2021. The ratio has increased by 15% since Thursday, indicating potential for further Ethereum strength in the near term.
Notably, hedge funds and family offices are diversifying their portfolios into Ethereum. BlackRock’s ETHA exchange-traded product, for example, saw a $99 million inflow on Friday, signaling growing institutional interest. This follows a period of outflows, underscoring the shift in sentiment toward Ethereum’s price potential.
On the options front, there has been increased activity in Ethereum call options, particularly in the short-term, with Ethereum continuing to show favorable market positioning. Meanwhile, Bitcoin seems poised for sideways trading due to a strong resistance level at $100,000, a key psychological barrier for traders.
In conclusion, with Ethereum showing resilience and gaining ground, especially as Bitcoin faces resistance, the next few months may offer Ethereum an opportunity to shine while Bitcoin consolidates. The market is watching closely for how these dynamics unfold, with many investors now betting on Ethereum’s outperformance.
