Bitcoin [BTC] and Ethereum [ETH] have been performing well recently, with the former hitting a new all-time high. While the two top currencies remain under close scrutiny, BTC and ETH have set their sights on new targets — $100,000 and $4,000, respectively.
But which cryptocurrency holds more promise?
Bitcoin has the upper hand!
As mentioned above, Bitcoin reached its ATH in November 2024. Conversely, ETH’s ATH was set during the crypto bull run in November 2021.
While many expected the ETH 2.0 upgrade to turn things around, that has not been the case. Nevertheless, ETH currently appears to be on track to hit new all-time highs in the coming months.
As BTC hit a record high a few days ago, more BTC investors took profits. According to data from IntoTheBlock, 98% of Bitcoin addresses are "rich", while the figure for ETH addresses is 88%.
Another aspect of Bitcoin’s clear advantage is its dominance. AMBCrypto found that despite BTC’s decline, its dominance is still much higher than ETH’s.
Specifically, while Bitcoin’s dominance remained above 56%, ETH’s dominance declined slightly over the past 24 hours to a value of 12.8%.
What indicators show that...
Looking ahead, there are issues for both cryptocurrencies. For example, Bitcoin’s NVT ratio has risen. A similar rise is seen on ETH’s chart. This shows that both cryptocurrencies are overvalued, hinting at a possible pullback in the short term.
However, a metric that is favorable to BTC is the exchange balance. When the balance of ETH increases, the balance of Bitcoin on exchanges decreases.
This means that investors are still considering buying BTC, while ETH investors are selling. Generally speaking, an increase in selling pressure leads to a price pullback.
Due to the growing selling pressure on Ethereum, it would not be surprising to see the king of altcoins fall to support levels around $3.38 in the event of a sharp correction.
On the other hand, rising buying pressure on BTC has once again pushed the coin above the $96,000 resistance level. This suggests that the king coin may soon start its rise towards $100,000 to set new highs.
Nonetheless, ETH investors should not lose hope as there is a chance that ETH could surpass BTC by 2025. As the market gains bullish momentum, some are speculating that a new altcoin season will arrive in the coming weeks or months.
If this happens, then ETH could potentially offer investors more profits than BTC.
Bitcoin ETF vs Ethereum ETF
When comparing these two cryptocurrencies, it becomes crucial to discuss their respective ETFs as they are one of the most talked about topics in 2024.
Interestingly, both cryptocurrencies have performed well in this regard. During the sharp price increases of BTC and ETH, their ETF inflows hit all-time highs. To be exact, on November 7, Bitcoin ETF inflows exceeded $1.3 billion.
Similarly, Ethereum ETF inflows also surged to an all-time high of $295 million on November 11.
While both cryptocurrencies have different uses, they both boast a strong market cap. Which cryptocurrency outperforms the other in terms of market cap or profitability, only time will tell.
