According to CryptoPotato, Bitcoin (BTC) and Ethereum (ETH) have shown a growing divergence in their performances during the current cycle. This divergence is attributed to a general trend of weaker capital rotation, especially when compared to previous cycles and all-time high breakthroughs.
In the lead up to Bitcoin's peak on March 14, there was a noticeable increase in speculative activity. The latest on-chain weekly report from Glassnode revealed that short-term holders of BTC accumulated capital, with about $240 billion in wealth held in coins moved within the last six months, nearing peak levels. However, Ethereum has not mirrored this trend. The leading altcoin has not even surpassed its 2021 all-time high level yet.
Bitcoin's Short-Term Holder (STH) Realized Cap is almost at the same level as the peak of the last bull run, while Ethereum's STH-Realized Cap has barely risen from its lows. This indicates a notably lackluster influx of new capital, reflecting the underperformance of ETH compared to BTC. This could partly be due to the attention and accessibility brought about by spot Bitcoin ETFs. The market is still waiting for the SEC's decision regarding the approval of a suite of Ethereum ETFs, expected by the end of May. As a result, seasoned Ether investors are sitting back and waiting patiently for higher prices.
Despite underperforming compared to BTC due to the lack of a catalyst, Glassnode's analysis suggests that the overall uptrend of ETH seems to be one of the more resilient in history, with relatively shallow corrections so far. The altcoin has been struggling to move past $3,000. It reached a multi-year peak of almost $4,000 earlier this year but has failed to maintain its run and is now about a grand lower.
