In a notable market analysis, economist Alex Krüger suggests a significant shift in investor interest from Bitcoin to Ethereum. According to Krüger Bitcoin’s growth potential has reached a limit, leading Ethereum to take the lead.
Krüger observes that the ETH/BTC trading pair has rebounded from the crucial level of 0.0479, indicating a potential market bottom. As of the latest data, Bitcoin is trading at $45,783, a slight increase over the past 24 hours. Ethereum could rally significantly as a result of the approval of a spot market Ethereum ETF, he anticipates.
Optimistic Stance on Ethereum
Several factors contribute to the perceived bottom for the ETH/BTC pair, including a narrative shift from Bitcoin ETF to Ethereum ETF, upcoming events such as the EigenLayer airdrop, a chart signaling a 50% correction with a fakeout of the 2022 lows, as well as an overarching sentiment of extreme pessimism.
Market Dynamics
A pivotal player in the January market landscape is Ethereum’s Dencun upgrade, featuring Ethereum Improvement Proposals (EIPs) like EIP-4844. In line with Krüger’s insights, the Ethereum market is poised for a 50% surge, enhancing its position in the crypto space by introducing “data blobs” to reduce Layer 2 transaction fees.
A strategy that has proven successful amid recent market fluctuations is longing for Bitcoin in anticipation of the spot market approval of Bitcoin ETFs. The impact of a potential sell-the-news event following a spot Bitcoin ETF approval seems to have diminished despite a recent dip in the crypto market.
While acknowledging reduced odds of a sell-the-news event, Krüger highlights that Bitcoin futures open interest remains high on the Chicago Mercantile Exchange (CME), suggesting persistent concerns about price volatility. Following the substantial leveraged sell-off earlier this week, the likelihood of such an event has lowered.
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