Crypto analyst Benjamin Cowen thinks Bitcoin might keep outperforming Ethereum, even if the much-anticipated Ethereum spot ETF gets approved.
Ethereum’s Underperformance:
Cowen says past predictions about Ethereum surpassing Bitcoin haven’t come true. He points out that the Ethereum/Bitcoin price ratio has been dropping, despite all the hype surrounding Ethereum’s transition to a new system called proof-of-stake. This suggests that the market might be more focused on Bitcoin’s monetary policy than anything else.
Bitcoin Dominance:
Cowen also believes that Bitcoin’s dominance (BTC.D) – which measures how much of the crypto market is controlled by Bitcoin – could dip in the short term, but will likely rebound in the fourth quarter. He’s basing this on historical trends from 2016 and 2020. A low BTC.D usually means that other cryptocurrencies are performing better than Bitcoin.
What Does This Mean?
Cowen’s analysis suggests that even with an Ethereum ETF, Bitcoin might continue to be the dominant force in the crypto market. He believes that Bitcoin’s strong monetary policy might give it an edge over Ethereum in the long run.
Important Note: This is just one analyst’s opinion. It’s crucial to do your own research and not rely solely on one person’s predictions. The crypto market is highly volatile, and investments can be risky.
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