Sunday, November 27, 2022
 

Will Bitcoin Have More Volatility Than Ethereum in the Near Future?

  • Bitcoin dominance is now hovering at 40.7%.
  • Recently, investors have been eyeing Ethereum more than Bitcoin.
  • The Ethereum to Bitcoin ratio is now 0.0733.

Bitcoin’s price history has been volatile throughout the last cycle.

Having the most prominent market cap in the market, Bitcoin has a trading volume of $26,559,826,148.51, while the second largest market cap holder, Ethereum, has a trading volume of $14,427,308,226.72, which means that Ethereum is gaining at the moment. This also hints at Bitcoin’s volatility. 

According to the Twitter thread by Joshua Lim, there are two easy measurements we can use to validate these intuitive feelings. The Ethereum/Bitcoin ratio is 0.0733, and traders can trade the ratio to stay 100% invested in crypto while taking advantage of changes in the prices of ETH and BTC.

Daily Chart showing Market Cap Bitcoin Dominance (Source: Trading View)

The second metric is BTC dominance; this refers to whether the altcoins are performing better, worse, or similar to Bitcoin. It is determined by dividing the market capitalization of Bitcoin by the total market capitalization of all cryptocurrencies. Usually, in a bear market, BTC dominance rises. But now it stayed at 40%. However, we have not seen it perform this cycle, likely due to ETH’s growing share.

Another compelling reason for BTC’s persistent heaviness is that no incoming institutions will invest in Bitcoin. Because nowadays, institutions and businesses, which use CME futures, exchange-listed products, and direct investments, are already invested in Bitcoin. Most future traders are now big fans of shorting BTC in this bearish market.

Ethereum has been receiving many eyes from the crypto market traders since Ethereum fans are waiting for the Merge, hoping the coin will go bullish after it. Ethereum’s “sound money” narrative is more compelling than Bitcoin’s “store of value” argument. During this cycle, investors who want to enter long positions need to have a firm grasp of Ethereum (ETH), and they’re increasingly leaning toward it as a gateway cryptocurrency.

Interestingly, investors may not be able to foresee whether Bitcoin will remain in 1st place in the market or if Ethereum will take over BTC’s place. But we can expect that upon fulfillment of the Merge, there will be high impacts on the Ethereum network.

  • Bitcoin dominance is now hovering at 40.7%.
  • Recently, investors have been eyeing Ethereum more than Bitcoin.
  • The Ethereum to Bitcoin ratio is now 0.0733.

Bitcoin’s price history has been volatile throughout the last cycle.

Having the most prominent market cap in the market, Bitcoin has a trading volume of $26,559,826,148.51, while the second largest market cap holder, Ethereum, has a trading volume of $14,427,308,226.72, which means that Ethereum is gaining at the moment. This also hints at Bitcoin’s volatility. 

According to the Twitter thread by Joshua Lim, there are two easy measurements we can use to validate these intuitive feelings. The Ethereum/Bitcoin ratio is 0.0733, and traders can trade the ratio to stay 100% invested in crypto while taking advantage of changes in the prices of ETH and BTC.

Daily Chart showing Market Cap Bitcoin Dominance (Source: Trading View)

The second metric is BTC dominance; this refers to whether the altcoins are performing better, worse, or similar to Bitcoin. It is determined by dividing the market capitalization of Bitcoin by the total market capitalization of all cryptocurrencies. Usually, in a bear market, BTC dominance rises. But now it stayed at 40%. However, we have not seen it perform this cycle, likely due to ETH’s growing share.

Another compelling reason for BTC’s persistent heaviness is that no incoming institutions will invest in Bitcoin. Because nowadays, institutions and businesses, which use CME futures, exchange-listed products, and direct investments, are already invested in Bitcoin. Most future traders are now big fans of shorting BTC in this bearish market.

Ethereum has been receiving many eyes from the crypto market traders since Ethereum fans are waiting for the Merge, hoping the coin will go bullish after it. Ethereum’s “sound money” narrative is more compelling than Bitcoin’s “store of value” argument. During this cycle, investors who want to enter long positions need to have a firm grasp of Ethereum (ETH), and they’re increasingly leaning toward it as a gateway cryptocurrency.

Interestingly, investors may not be able to foresee whether Bitcoin will remain in 1st place in the market or if Ethereum will take over BTC’s place. But we can expect that upon fulfillment of the Merge, there will be high impacts on the Ethereum network.

 

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