The U.S. presidential election votes were counted today. Since Trump once had a great chance of winning (Trump's votes were 1 times ahead of Harris in the morning), the cryptocurrency market has reacted in advance and ushered in a big rise.
BTC’s daily gain is equal to the entire October’s gain
According to Binance spot market data, Bitcoin hit $75,000 at around 11 a.m., setting a new all-time high, with a single-day cumulative increase of 10.48%, equivalent to the increase for the entire month of October (10.76%).
At press time, it is currently trading at $74,538, up 8.6% in the past 24 hours. Currently, the volatility is high, so investors should be aware of the risks.
BTC Price Chart
Driven by Bitcoin, the cryptocurrency market has seen a widespread rally, with DOGE soaring 27%. Among other L1 public chains, SOL performed outstandingly, rising 14.6%, surpassing Bitcoin's gains; however, Ethereum only rose 6.3%, lagging behind Bitcoin.
ETH/BTC New Low
This has caused the ETH/BTC ratio to continue hitting new lows. According to TradingView data, the ETH/BTC ratio fell below 0.035, reaching a low of 0.03466, marking the lowest point since March 2021. At the time of writing, the ETH/BTC ratio is temporarily reported at 0.0348.
Trump Can't Save ETH Reasons
ETH's weak performance in this cycle has sparked ongoing doubts and FUD in the market about its future, mainly revolving around the following two points:
Lack of application advantages: Compared to infrastructure, the market in this cycle places more emphasis on concrete applications, and the most attention-grabbing application narratives like AI and payments are not Ethereum's strengths, which diminishes Ethereum's attractiveness.
L2 development dividends cannot benefit Ethereum: Although the L2 ecosystem is developing rapidly, Ethereum cannot benefit from the prosperity of L2.
Against the backdrop of other cryptocurrencies continuing to rise, if the price of Ethereum remains below $3000, it will further weaken its market position and confidence accumulated over the past decade, leading funds to prefer other projects, creating a vicious cycle that makes it difficult for Ethereum's price to break through.
Additionally, after the Dencun upgrade, ETH returned to inflation, and the listing of the Ethereum spot ETF failed to attract market funds, all of which have greatly undermined investors' confidence in Ethereum.
Analysts are skeptical about ETH/BTC reversal
Regarding the continued new lows of ETH/BTC, some investors expect a rebound. However, market analyst Zach Voell believes that there is 'no reversal in sight', stating:
Don't let the election distract you from the fact that ETH/BTC continues to plunge to new lows.
Cryptocurrency commentator Colin Talks Crypto shares the same stance, stating that ETH/BTC will drop further. He expects it to fall to the level of 0.025 to 0.03.
