Published on juli 10, 2024, 12:25 am
Image source: Fox News
```json [ { "TLDR": "Ethereum is not performing as well as Bitcoin recently, potentially due to delays in the approval of a spot Ethereum ETF and stronger corrections in Ether compared to Bitcoin. Analysts believe that once the spot Ethereum ETF is launched, there may be a positive impact on Ethereum's performance." } ] ```
Ethereum, one of the leading altcoins in the cryptocurrency market, has seen a recent underperformance compared to Bitcoin by various metrics. Investors are eagerly awaiting the debut of a spot Ethereum Exchange-Traded Fund (ETF) in hopes of turning this trend around.
While Ethereum kicked off the year with strength, it started to lose momentum in mid-March. Despite a resurgence in mid-May driven by expectations surrounding the approval of spot Ethereum ETFs in the US, Ethereum has lagged behind Bitcoin’s performance. Over the past year, Ethereum has climbed approximately 60%, whereas Bitcoin has seen an 87% increase in their respective USD pairs.
An insightful report called Digital Assets: Insights and Market Trends jointly published by CME Group and Glassnode sheds light on the reasons behind Ethereum’s underperformance relative to Bitcoin. Data from Cointelegraph Markets Pro and TradingView indicates that Ether has faced more significant corrections throughout 2024 compared to Bitcoin. Notably, Ether experienced a substantial drawdown of 31% between March 12 and May 1, while Bitcoin only dropped by 23% during that period.
The report highlights a concerning trend where Ethereum’s corrections have been more pronounced than Bitcoin’s over the years. The largest drawdown for Ether in the current cycle stands at -42%, hinting at investor cautiousness despite bullish market phases.
Factors contributing to Ethereum’s lagging performance include the approval of spot Bitcoin ETFs earlier in January 2024 and rising competition from alternative proof-of-stake blockchains. Additionally, onchain metrics like Market Value Realized Value (MVRV) ratios point towards lower profitability for ETH investors compared to BTC holders.
Analysts remain optimistic about a potential turnaround for Ethereum once spot Ethereum ETFs kick into action. The anticipated inflow of funds following these ETFs’ launch could propel ETH prices higher and potentially see it hit new milestones.
It’s essential to note that investment decisions involve risks, and readers are encouraged to conduct thorough research before committing to any financial moves within the volatile world of cryptocurrencies.
Original article posted by Fox News
