Bitcoin’s ETF approval and halving anticipation have increased demand for BTC compared to Ethereum in recent weeks.
The price of Ethereum’s native token, Ether (ETH), has reached a 15-month low against Bitcoin and the lowest since Ethereum switched to proof-of-stake (PoS).
The ETH/BTC pair dropped to 0.056 BTC, breaking below its 200-week exponential moving average (200-week EMA) near 0.058 BTC. This raises downside risks for Ethereum in 2023, with a potential target of around 0.051 BTC.
Institutional capital flow data reflects Ethereum’s weakness compared to Bitcoin, with Bitcoin-specific investment funds attracting $246 million year-to-date, while Ethereum funds have experienced outflows of $104 million.
The buzz surrounding a potential spot Bitcoin ETF approval in the US and the upcoming Bitcoin halving in April 2024 are contributing to Bitcoin’s dominance over Ethereum.
The halving will reduce the block reward for Bitcoin miners, which historically has been a bullish factor as it cuts new supply in half.
This article does not provide investment advice, and readers should conduct their own research before making any investment decisions.
Summary:
– Bitcoin’s ETF approval and halving anticipation have boosted demand for BTC compared to Ethereum.
– Ethereum’s price has reached a 15-month low against Bitcoin and the lowest since switching to PoS.
– The ETH/BTC pair broke below its 200-week EMA, raising downside risks for Ethereum in 2023.
– Institutional capital flow data shows Bitcoin-specific investment funds attracting more capital than Ethereum funds.
– The potential approval of a spot Bitcoin ETF and the upcoming Bitcoin halving are contributing to Bitcoin’s dominance over Ethereum.
– The halving will reduce the block reward for Bitcoin miners, historically a bullish factor.
– This article does not provide investment advice, and readers should conduct their own research.
