Is Bitcoin set to overshadow Ethereum in the next bull market?

Quick Take

The Ethereum (ETH) to Bitcoin (BTC) exchange rate, currently trading slightly above 0.05, has utilized this support level for the past six months. This enduring stability at the support level may indicate an impending alteration in market dynamics.

Historically, Ethereum has closely tracked Bitcoin’s market movements. However, this correlation has weakened in recent weeks, now standing at 0.85. Since April 2023, the ETH/BTC ratio has declined by 25%, highlighting Ethereum’s relative underperformance. This shift is mainly due to the success of Bitcoin ETFs.

A chart from Glassnode illustrates the BTC-ETH Dominance metric, which monitors overarching trends in market performance. The metric is at -0.002, indicating a marginal period of Ethereum’s dominance. Nonetheless, the prevailing trend hints at a forthcoming shift favoring Bitcoin’s dominance. Should this occur, it would mark the first bull market since Ethereum’s creation in which Bitcoin surpasses its nearest competitor in performance.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

@jvs_btc LinkedIn Email James

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