Bitcoin (BTC) has been outperforming Ether (ETH) in the past several days as BTC surged above $50,000 for the first time in history. mientras tanto, one popular cryptocurrency trader explains that this is “simple math” given the growing institutional demand for BTC.
While ETH is beating BTC in USD terms year-to-date, Bitcoin is gaining steam in February, arriba 60% compared to Ether’s 50%.
Ether did rally by roughly 6% sobre el último 24 hours as Grayscale added 20,000 ETH to its Ethereum Trust. sin embargo, Grayscale’s BTC stash is worth $34 mil millones, which dwarfs its ETH holdings of $5.8 mil millones.
More institutional demand for Bitcoin vs. Éter
mientras tanto, a pseudonymous trader known as Bitcoin Jack noted that despite these latest ETH inflows, one single entity, namely MicroStrategy, is adding 20,000 BTC worth almost $1 billion to its balance sheet.
According to data compiled by Bitcointreasuries, companies are currently holding over 1.2 million BTC worth over $48 billion dollars — and that figure does not yet include Tesla.
En otras palabras, there is a big difference between the amount of Bitcoin that is being acquired by institutions compared to Ether. Basado en esta tendencia, the trader said BTC outperforming ETH is not a surprise. Él dijo:
“Agrega escala de grises 20,000 $ETH, for its clients, today MicroStrategy, a single entity, adds 20,000 $BTC to its balance sheet, anytime now Bitcoin outperforming shouldn’t be a surprise, just simple math.”
Retail and institutional mania
En el corto plazo, one variable that could catalyze a larger accumulation trend for Ether is the listing of Ethereum futures by CME. Como informó Cointelegraph, CME listed Ethereum futures on Feb. 9, the day ETH broke out and achieved a new all-time high.
It has been less than two weeks since the CME Ethereum futures market launched, and many trading desks and institutions are likely still in the process of preparing their infrastructure. Por lo tanto, the actual demand and trading volume for ETH in the CME Ethereum futures market will likely take time to grow, as seen with Bitcoin, until funds begin actively trading the asset.
Al mismo tiempo, with the cryptocurrency bull market is in full, major investment funds and retail investors may be experiencing FOMO, according to Paolo Ardoino, the CTO at Bitfinex. Él explicó:
Paolo Ardoino, CTO at Bitfinex: “Major investment funds and retail investors alike may be experiencing FOMO (fear of missing out) as bitcoin’s market cap surges towards US$1 trillion. As bitcoin hovers around US$51,000, Ethereum is also touching record highs. Both technologies represent a monumental advance with which even the most senior figures in the digital token space are still grappling. Rather than following blindly or precipitately, one should first familiarise oneself with this amazing tech, whether one is a financial goliath or novice retail investor.”
Por último, one major factor that underpins Bitcoin’s “digital store of value” proposition is the capped supply of BTC contrary to the unknown total supply of Ether. Por lo tanto, besides the brand image, this digital scarcity aspect is likely what’s driving institutions first and foremost to Bitcoin.
mientras tanto, other cryptocurrencies like ETH remain alternatives or “altcoins” and are typically considered for the purpose of diversifying, albeit in much smaller amounts if any, as exemplified by Grayscale’s holdings.
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