Ethereum
Ethereum Could Continue to Underperform Bitcoin Even After Spot ETF Approval, Benjamin Cowen Says – Here’s Why
A widely followed crypto analyst believes that Bitcoin (Bitcoin) could continue to outperform Ethereum (ETH) even if a cash ETH exchange-traded fund (ETF) were approved as expected.
In a new video update, crypto strategist Benjamin Cowen tell His 803,000 YouTube subscribers claim that Bitcoin may continue to have an advantage over Ethereum, as past narratives of ETH outperforming BTC have failed to live up to the hype.
“Ultimately, I don’t think the ETH spot ETF will necessarily prevent ETH/Bitcoin’s valuation from remaining at relatively low levels… There have been so many narratives spread over the last few years about why ETH/Bitcoin’s valuation will never even reach the levels it currently sits at… In 2022, when ETH/Bitcoin was at 0.08 BTC, if you had told them it was going to go down to the mid-0.04 BTC by 2024, they would have laughed at you…
We have these stories about the transition from proof of work to proof of stake on this deflationary mechanism that theoretically would have allowed Ethereum/Bitcoin’s valuation to “hold up” and it didn’t happen. And so that gave us a glimpse into the idea that, hey, maybe this is more about monetary policy than anything else.
ETH/BTC is trading at 0.05416 BTC ($3,112) at the time of writing.
The analyst also says that the Bitcoin (BTC.D) dominance chart excluding stablecoins could decline in the short term and then increase in the fourth quarter, based on historical precedents from 2016 and 2020.
“There is reason to believe that any potential pullback will likely occur over the next month or so… In the fourth quarter of halving years, we have seen dominance increase twice.”
Source: Benjamin Cowen/YouTube
The BTC.D index tracks Bitcoin’s share of the total cryptocurrency market capitalization. A bearish BTC.D chart suggests that altcoins are poised to outperform Bitcoin.
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