Glassnode Report Highlights Diverging Performance Between Bitcoin and Ethereum
The onchain analytics firm Glassnode has released a new report detailing the contrasting performance of bitcoin and ethereum during the 2023-24 cycle. The report highlights bitcoinâs resilience and ethereumâs comparative lag in speculative interest and price performance.
Bitcoinâs Post-Halving Resilience Contrasts With Ethereumâs Struggles, Says Glassnode
Glassnode researchers noted a significant divergence in performance between bitcoin (BTC) and ethereum (ETH), with BTC showing stronger resilience. âEthereumâs under-performance this cycle relative to bitcoin is reflected in a measurable lag in speculative interest from the short-term holder cohort,â the latest Glassnode onchain report states. This divergence has been attributed to a weaker capital rotation trend for ether compared to past cycles.
The report further details that the fourth Bitcoin halving initially led to a sell-off, with BTC prices falling to $57,000 before recovering. âMeasured from the [$73,000 all-time high], bitcoin prices corrected by -20.3%, which is the deepest correction on a closing basis since the FTX lows in Nov-2022,â Glassnode stated. In contrast, ether experienced a similar drop but suffered a maximum drawdown twice as severe as BTCâs.
Glassnode researchers highlighted that despite the initial sell-off, both BTC and ETH showed signs of recovery. However, ethereumâs price performance continued to lag behind bitcoin. The researchers noted, âFor ethereum, we continue to see ongoing HODLing behaviour, particularly in the 1 to 3-year cohorts,â indicating a wait-and-see approach from seasoned holders due to ETHâs current under-performance.
Investor behavior also differed between the two assets. Bitcoinâs net unrealized profit/loss (NUPL) metric crossed into the euphoria phase three months earlier than ethereumâs, reflecting a faster expansion of unrealized profits among bitcoin holders. Glassnodeâs analysis suggests that the disparity in performance and investor sentiment is likely influenced by the approval of spot bitcoin exchange-traded funds (ETFs), which has not yet been mirrored for ethereum.
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