On Tuesday, Bitcoin (BTC) was nearly flat, while alternate cryptocurrencies like Ethereum and Solana’s SOL token were up approximately five percent in the last 24 hours. As traders sought incentive programs, LUNA, the Terra blockchain’s native coin, surged approximately 13%.
Overall, trade tensions were bumpy throughout global markets as Jerome Powell, US Federal Reserve Chair, indicated that monetary policy might tighten sooner than expected, which could be a negative for speculative assets such as cryptocurrencies and stocks.
Despite recent price fluctuations, several analysts continue to be bullish about Bitcoin.
Bearish Bitcoin options activity, according to several analysts, is a source of concern. Delphi Digital mentioned in a blog post, “Puts are getting more expensive as market participants turn their focus towards hedging spot (positions) or speculating on further downside. In a recent tweet, Genesis Volatility themselves noted a large number of short-term put purchases,”
What Happened?
Since the Ethereum platform’s native token was created in 2015 as an alternative coin to the original cryptocurrency, Ether (ETH) has outperformed Bitcoin by the most this year.
According to Stephane Ouellette, the co-founder and chief executive of cryptocurrency platform FRNT Financial Inc., the biggest difference between Ethereum and Bitcoin is that the latter is seeing much more correlation with ancillary growth sectors in crypto, such as non-fungible tokens, Defi, and the so-called metaverse.
“The current Bitcoin trading window seems to associate the asset more with global currency trends, inflation hedges, etc.,” Ouellette said, also mentioning “while ETH has, at least from a current market perception standpoint, higher correlations with the growth of crypto sub-sectors.”
Ether is the currency that powers the Ethereum network, which is the most widely used blockchain for hundreds of decentralized apps and has seen a surge in usage and popularity this year. It was also upgraded, which was supposed to make it faster and more extensible.
The token is on its way to new highs, resuming a climb that was halted at the end of last week amid broader risk-asset turbulence. Ethereum, on the other hand, has broken out to the upside after bouncing off its 50-day moving average on Monday and has gained roughly 13% since Friday.
During the Ether rise, the value of Shiba Inu and Dogecoin, meme coins as they’re known, increased. According to trading robots, Shiba has increased by 26% in the previous 24 hours, while Dogecoin has increased by 3.1 percent. Shiba was launched for trade on the Kraken exchange on Tuesday.
Ether surged as high as 4.9 percent to roughly $4,671 on Tuesday before reversing course. According to data gathered by sources, a digital asset manager, investors acquired nearly $23 million of Ethereum last week, indicating the fifth straight week of inflows.
Thus far this year, Ether has outperformed Bitcoin in all but four months, and it is concluding November with the second month of better performance. At the moment, one Ethereum is worth approximately eight percent of a Bitcoin.
Bitcoin fell 1.9 percent to $57,221 on Tuesday, after reaching a new high of nearly $69,000 earlier during November.
Chief market strategist of Miller Tabak + Co., Matt Maley, said, “I don’t want to get too excited about this move too quickly. However, Ethereum has been outperforming Bitcoin over the past month.” He also added that it is going to prove that Ethereum has become the new cryptocurrency of choice for most investors if it breaks out above its mid-November peaks while Bitcoin remains below its mid-November as well as April highs.
Conclusion
Ethereum, the world’s second-largest crypto coin by market capitalization, was nearing $4,800, close to its all-time high, and had gained around five percent in the previous 24 hours. During the same time frame, Bitcoin remained relatively unchanged. Technical indicators show that Ether’s price is going to continue to rise in relation to Bitcoin.
WeInvests is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.
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