Based on year-to-date performance and drawdowns from all-time highs (ATH), Bitcoin (BTC) and Ethereum (ETH) are performing very similarly. BTC is up 25.5% year-to-date, while ETH is up around 27%. Bitcoin fell 69.9% from ATH while Ether fell 68.9%.
Despite this highly comparable performance, discussion Ethereum claims it could replace (“flip”) Bitcoin as the largest cryptocurrency by market capitalization within the next few years or in the next bull cycle.
One of the proponents of this theory is Haseeb Qureshi of Dragonfly Capital.recently interviewthe investment firm’s managing partner, said if any cryptocurrency were to reach $1 trillion, it would be Ethereum.
his reasoning? Institutional investors who need to align their purchases with environmental, social and governance (ESG) issues:
It takes an institutional investor to be willing to buy something of this size, and if you are an institutional investor, Ethereum is really the only game.
Additionally, experts said it was becoming increasingly difficult for institutional investors to justify Bitcoin as an investment.
“We do a lot of work with big institutions, so we see it often. […]That’s obviously a growing concern for them. They want to invest in cryptocurrencies, but they have to comply with ESG mandates,” said Qureshi.
2. Ethereum is Better #bitcoin Because it is more ESG friendly in the eyes of the institution.
“If you want a trillion dollars of coins, you can’t get there from behind a retail store.”
“Ethereum is really the only game if you want institutional investors.” pic.twitter.com/f2H2gg224T
— Miles Deutscher (@milesdeutscher) January 18, 2023
Another argument by proponents of this theory is that Ethereum is primarily OFAC (Office of Foreign Assets Control) compliant, which may make it easier for institutions to enter the market.
Bitcoin proponents, on the other hand, could argue that mining is one of the most sustainable industries. The Bitcoin Mining Council has found in its latest report that the energy mix for Bitcoin mining is currently 58.9% sustainable.
In addition, estimate suggestion We believe that Bitcoin mining could reduce global emissions by up to 8% by 2030 simply by converting the world’s wasteful and dangerous methane emissions into less harmful emissions by a factor of 80. .
Here’s what the Ethereum/Bitcoin technical analysis says
Looking at the Ethereum/Bitcoin 4-hour chart, we can see that ETH is currently in a downtrend compared to BTC. ETH surged past the ETH/BTC ratio pennant before returning to support as Bitcoin rose from $18,000 to $21,000 in a matter of days. explained By the founder of LedgArt via Twitter.
Analysts say these types of fake wicks are on the downside. He argued: “Expect this level to drop in the coming weeks as BTC continues to rise and absorb liquidity from alts similar to what happened in the 2019 bear market rally. Yes,” shared the chart below.
BTC is currently trading at $18,798 while ETH is just above the $1,500 support level at $1,528.
Kanchanara / Unsplash featured image, Twitter/TradingView.com chart