Based on year-to-date performance and their declines from their all-time highs (ATHs), Bitcoin (BTC) and Ethereum (ETH) have performed very similarly. While BTC has gained 25.5% since the beginning of the year, ETH has gained about 27%. Since its ATH, Bitcoin has lost 69.9%, while Ether has lost 68.9%.
Despite this very comparable performance, Discussion Maintains that Ethereum may replace Bitcoin (“Flip”) as the largest cryptocurrency by market cap in the next few years or in the next bull cycle.
One proponent of this theory is Haseeb Qureshi of Dragonfly Capital. recently The interviewthe investment firm’s managing partner said that if any cryptocurrency is going to hit $1 trillion, it will be Ethereum.
His reasoning? Institutional investors who need to align procurement with their environmental, social, and governance (ESG) agenda:
You need institutional buyers to be willing to buy this thing in size and if you are an institutional buyer, Ethereum is really the only game in town.
Additionally, the expert expressed that it is becoming increasingly difficult for institutions to justify Bitcoin as an investment.
“I see it a lot because we work a lot with large institutions. […]. This is obviously something that causes them more and more concern. They want to invest in crypto, but it has to be in line with their ESG mandate,” Qureshi said.
2. Is superior to Ethereum. #Bitcoin In the eyes of institutions, because it is more ESG friendly.
“If you want a trillion dollar coin, you’re not going to go after retail there.”
“Ethereum is really the only game in town if you want institutional buyers.” pic.twitter.com/f2H2gg224T
— Miles Deutscher (@milesdeutscher) January 18, 2023
Another argument made by proponents of the theory is that Ethereum is essentially OFAC (US Office of Foreign Assets Control) compliant, which could make it easier for entities to enter the market.
On the other hand, Bitcoin proponents will counter that the mining industry is one of the most sustainable industries. In its latest report, the Bitcoin Mining Council found that the energy mix in Bitcoin mining is now 58.9% sustainable.
Also, estimates Recommend That Bitcoin mining could reduce global emissions by 8% by 2030, just by converting the world’s wasteful and dangerous methane emissions into 80 times less harmful emissions.
Here’s What Ethereum/Bitcoin Technical Analysis Says
A look at the Ethereum / Bitcoin 4-hour chart shows that ETH is currently in a bearish trend against BTC. ETH saw a rise above and outside the pennant for the ETH/BTC ratio, which then began to pull back to support as Bitcoin expanded from $18,000 to $21,000 in a few days, as Explained By the founder of LedgArt via Twitter.
According to the analyst, these types of fake outweeks are spreading to the downside. He argued: “Still expect to break below this level in the next several weeks as BTC continues to strengthen, as liquidity is absorbed from alts in the 2019 bear market rally,” and the chart below shared the
BTC is currently changing hands at $18,798, while ETH sits just above the $1,500 support level at $1,528.
Featured image from Kanchanara/Unsplash, chart from Twitter/TradingView.com
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