Bitcoin
See why Ethereum (ETH) is lagging behind Bitcoin (BTC), according to Glassnode
Market intelligence firm Glassnode claims Ethereum (ETH) is lagging behind Bitcoin (Bitcoin) for an important reason.
In a new analysis, Glassnode it says that Ethereum has not seen the same level of capital growth from new buyers that Bitcoin has in the current market cycle, which has driven the crypto king to new all-time highs (ATHs).
Analysts say the approval of spot Bitcoin exchange-traded funds (ETFs) was likely the main factor in the increase in short-term holders purchasing BTC over the past 155 days.
“In the run-up to Bitcoin’s all-time high on March 14, there was a notable increase in speculative activity. Specifically, capital accumulation was observed among short-term holders (STHs), with US dollar wealth held in traded currencies over the past six months approaching $240 billion, close to the ATHs. However, this trend has not been reflected in ETH, which has yet to see a price break above the 2021 ATH.
While Bitcoin’s STH-Realized limit is almost at the same level as the last bull run peak, ETH’s STH-Realized limit has barely risen from the lows, suggesting a markedly lackluster inflow of new capital. In many ways, this lack of new capital inflows is a reflection of ETH’s underperformance relative to BTC. This is likely in part due to the attention and access provided by spot Bitcoin exchange-traded funds.”
Source: Glassnode
The Realized Cap metric records the price at which each coin was moved and aims to assess how many holders are making a profit or loss.
Source: Glassnode
Analysts suggest that ETH could see a large capital inflow if the US Securities and Exchange Commission (SEC) approves the Ethereum spot ETF forms at the end of this month.
“The market is still awaiting the SEC’s decision to approve a set of ETH ETFs expected by the end of May.”
Bitcoin is trading for $61,454 at the time of writing, down more than 2.6% in the last 24 hours. Meanwhile, Ethereum is trading for $2,970 at the time of writing, down more than 2.7% on the day.
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