Markets
Bitcoin Rally Leaves Ethereum Far Behind! Why?
8h42 ▪ 3 minute read ▪ by Eddy S.
Cryptocurrency markets have had a bullish week, but Ethereum appears to be struggling to keep up with Bitcoin’s rapid pace. Although the total market capitalization increased by 5.5%, ETH failed to fully capitalize on this bullish momentum.
Cryptocurrencies: Ethereum struggles to keep up with the uptrend
ETH closed above $3,000 more than five days ago and has underperformed BTC by 22% since the start of 2024. This trend highlights the difficulty Ethereum is facing in maintaining its value relative to Bitcoin. Furthermore, US macroeconomic data appears to support the rally in some rare assets.
As a result, markets reacted positively to consumer price index (CPI) data, which showed a 3.4% year-on-year increase in April, in line with market expectations. Unfortunately, this indicator was not enough to boost Ethereum as it currently is with the queen of cryptocurrencies.
Growing uncertainty among investors
Some crypto analysts believe that the SEC’s upcoming decision on May 23, 2024, regarding VanEck’s application for an Ethereum spot ETF, is a major reason for Ethereum’s inability to break the $3,000 resistance level. The uncertainty surrounding this event is leading traders to delay their investment decisions until the outcome is more certain.
However, despite the long-term optimism regarding Ethereum’s prospects, a rejection by the SEC could lead to a short-term market correction. Eric Balchunas, senior ETF analyst at Bloomberg, did expressed doubts on the approval of an Ethereum ETF in 2024, given the regulator’s cautious approach towards products that could be classified as securities, particularly those that include native staking services.
In conclusion, while the cryptocurrency markets have had a positive week, Ethereum has yet to prove its ability to keep pace market leaderBitcoin, in this bull run.
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Eddy S.
The world has evolved and adaptation is the best weapon to survive in this wavering universe. The crypto community manager at the base interests me in everything that touches or comes close to the blockchain and its derivatives. With a view to sharing my experience and getting to know a domain that I am passionate about, I am the one who writes informative and décontractés a la fois articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.