Is Ethereum a Threat to Bitcoin? Various signs point to this. Find out what top analysts think and what it means for investors.
Bitcoin and crypto markets avoided a deeper decline, showing strength for several days. After retesting the lower-$20,000 region, BTC is now poised for more upside. However, Ethereum is catching up – analysts even see the possibility that the smart contract platform will overtake Bitcoin. What do investors need to know now?
Bitcoin ready for next bull run
Bitcoin, where is the journey going? Analysts and investors have been longing for a breakout for weeks, now may be the time:
After the number 1 cryptocurrency by market cap hasn’t budged for a long time, BTC is currently positioning itself for a boost. “We’ve been in this area for 137 days. I feel like I have half my life in between [19.000 Dollar] and [20.000 Dollar] used”, writes the popular crypto trader “Inmortal”, for example, to his approximately 180,000 Twitter followers – and should speak from the heart of many BTC investors.
“We’ve been in this area for 137 days. I feel like I’ve spent half my life between 19-20k.” Immortal (@immortalcrypto) 3 November 2022
However, a stage victory has been achieved: the price pullback below $20,000 was successfully averted – now it is back to the top of the trading range. It sits at $21,000 and, if recovered, sets the stage for a rally to new local highs — first $21,500, then $22,000. Bitcoin breathes a sigh of relief – and the rest of the markets relax: Many altcoins in the top 100 are currently rising in the double-digit percentage range, including OKB (OKB) with a plus of +23.52%, Polygon (MATIC, +18.31 %) or Fantom (FTM, +18.57%). On the other hand, Dogecoin (DOGE), the big winner of the last week, is facing repeated profit-taking, down -6.49% on a daily basis.
The meme coin king thus contrasts with the broader market trend – which is bullish: The global crypto market cap has risen 1.64% in the last 24 hours, total digital assets are now worth $1.03 trillion. Several industry observers expect a bullish performance for Bitcoin and Co. in the coming weeks, and Ethereum (ETH) in particular can therefore catch up massively and neutralize the losses of recent months. Analysts even see a chance that the leading smart contract platform will overtake Bitcoin to become the most valuable cryptocurrency by market cap. But how likely is that? Is it just wishful thinking – or can it actually work?
Will Ethereum Overtake Bitcoin?
Ethereum enthusiasts have dreamed of such a scenario for years: Ether, the number 2 cryptocurrency for years, overtakes Bitcoin and dethrones the crypto top dog. Such “exchanges” are known in the scene as “flipping” – and several industry observers now consider ETH to be well positioned to actually surpass Bitcoin. For that, ETH needs to reach double its current market value. “It’s a difficult task, but not impossible,” comments Standard DAO co-founder Aaron Rafferty in an interview. ETH has outperformed BTC on both price and growth since mid-2019. “It’s clear that BTC currently has the advantage in terms of market cap, but ETH is making significant progress in a number of areas,” the crypto entrepreneur said.
In particular, the spread and use of Ethereum is progressing faster. He sees individual potential uses for both BTC and ETH. But according to Rafferty: “At the moment, the bull case speaks for Ethereum.” Among other things, ETH scores with the number of transactions – which is currently five times as high as Bitcoin. However, it should not come to a possible “flipping” too quickly. After all, Bitcoin is also moving forward, and it is also about to have a big event: the next “halving” will take place in 2024. This will reduce the amount of Bitcoins issued to miners by half. This makes BTC rarer – and therefore potentially more valuable. Experts are sure: The so-called halving drives the Bitcoin price like no other event.