Market Analysis – Is the market dominance of Ethereum and Bitcoin expected to rotate?

Affected by the news of the Ethereum spot ETF and Mt. Gox’s 142,000 Bitcoin repayment this week, the price of BTC fluctuated up and down. However, the overall trend is still in a large range, with support at US$66,000 and pressure at US$71,000. There is not much operational value nearby, and this week’s weekly report will still focus on ETH-related trends.

Some documents for the Ethereum spot ETF were officially approved by the U.S. Securities and Exchange Commission (SEC) last Friday. Key documents for the spot Ethereum ETF from multiple issuers including BlackRock, Fidelity, and Grayscale 19b- 4 table, although "partial approval" does not allow the Ethereum spot ETF to be listed for trading immediately, it is still a significant step toward full approval for selling. More importantly, compared with the market's original "rejection expectations", this is undoubtedly a major benefit.

Therefore, immediately after this news was released, the price of Ethereum saw a significant increase. Ethereum has gained 28.26% so far in May, recouping April’s 17.35% loss.

Compared with Ethereum, although the gold flow situation of Bitcoin spot ETF has maintained a stable net inflow in the past week, another new event that is enough to panic the market has also occurred "Mt. Gox 142,000 Bitcoin repayment" . Although these Bitcoin claims have most likely changed hands many times in the over-the-counter market, the actual impact on the market is not as huge as it seems on the surface, and the actual selling pressure may also occur at the end of the year, but " "The release of Bitcoin worth US$9.7 billion" will still cause panic in the market, or it may become a tool for the main force to harvest contracts, thereby affecting the momentum of Bitcoin's further rise.

Based on the monthly charts of the above two mainstream currency trading pairs, we have successfully held the support and rebounded to break through the key pressure level. This downward trend line has not been broken since August 2022, although the monthly line has not yet been broken. closing, but this trend still has a certain degree of reference. If Ethereum can continue to benefit from the full approval of the Ethereum ETF, Ethereum may continue to break upward in this wave and continue to outperform Bitcoin next month, shifting market dominance to Ethereum. On the other hand, thanks to the surge in Ethereum, Ethereum ecological currencies have also experienced considerable growth, such as LDO, PENDLE, ENS, and ETHFI. If Ethereum can continue to gain market attention, these currencies will more or less You can also enjoy market dividends.

On the other hand, thanks to the surge in Ethereum, Ethereum ecological currencies have also experienced considerable growth, such as LDO, PENDLE, ENS, and ETHFI. If Ethereum can continue to gain market attention, these currencies will more or less You can also enjoy market dividends.

Binance Copying Analysis

GTRadar – BULL

Copy link GTRadar – Balanced Follow the link

• The yields of "GTRadar - BULL" and "GTRadar - Balance" in the past 7 days are -3.36% for the former and -1.96% for the latter, and -1.5% for the former and -2.04% for the latter in the past 30 days.

• In the past week, the two investment portfolios successfully benefited from the bullish news of the 5/20 ETF, but the market began to wash out significantly later. After the passage of the 5/23 ETF, it caused the market to fall back, and the profits of the two investment portfolios were also taken away.

• The recent waves of rise are different from the general rise in the entire market in the past. Instead, the market has focused on a few currencies. Residual value coins or coins traditionally classified as blue chips have not performed much or even declined. I am afraid that this phenomenon will become a problem in the future. This is normal, so the team is currently evaluating whether to focus funds and strategies on BTC, ETH, SOL and a small number of market hot currencies to maximize profits.

• Currently, "GTRadar - BULL" holds a net long position of approximately 200% (full position is 300%), of which ETH holds a larger position.

• The current "GTRadar - Balance" is 120% (full position is 300%), of which ETH holdings are larger.

• The long-term returns of a follower who frequently changes his investment portfolio are not as good as those of a follower who continues to follow a single group. Don’t end the follower easily just because of a short-term retracement. Judging from the curve, the retracement is a good time to start following. In and out, on the contrary, the yield rate will be significantly reduced.

Potential market opportunities

US election concept meme coin

Another important potential market opportunity is the "U.S. presidential election." Since Trump has expressed strong support for cryptocurrency in many speeches, the powerful "election meme culture" in the United States has spread to the meme currency market of the cryptocurrency industry. Whether it is TRUMP based on the Trump concept, BODEN based on the Biden concept, FREE and JUSTICE based on the amnesty concept, or PEOPLE based on the democratic concept, the performance in the past week has been quite outstanding. With six months to go before the U.S. election, investors can continue to pay attention to the many speculation opportunities in this series of meme coins.

Solana Eco Cat Meme Coin

Observed over the past week, it can be seen that the market trend of Solana ecological token is stronger than that of most altcoins. What needs to be emphasized is that among them, the "cat" meme coins have attracted the most upward momentum, including: MANEKI, MEW, POPCAT, CWIF, WEN, etc. In the past week, gains ranging from 35% to 115% have been achieved.

hot news

US House of Representatives passes Crypto Market Structure Act FIT21

The U.S. House of Representatives passed the Republican-led Financial Innovation and Technology Act for the 21st Century (FIT21) on Wednesday (22nd) by a vote of 279 to 136, with 71 Democratic congressmen voting in support of the bill. The FIT21 bill would give the U.S. Commodity Futures Trading Commission (CFTC) more power and funding to oversee the cryptocurrency spot market and "digital commodities," especially Bitcoin. The bill also creates a process that allows digital commodities originally issued as part of an investment contract to be traded in secondary markets. Stablecoins and money laundering prevention provisions are also included in the bill.

Ethereum ecological wallet MetaMask is rumored to integrate Bitcoin

"CoinDesk" quoted two people familiar with the matter as reporting that MetaMask, the most widely used Ethereum ecological wallet, plans to add support for Bitcoin (BTC). The exact timeline is unclear, but one person familiar with the matter said MetaMask could complete the integration within the next month.

U.S. SEC approves key documents for Ethereum spot ETF, but investors still need to wait for Form S-1 approval

The U.S. Securities and Exchange Commission (SEC) approved key regulatory documents related to Ethereum spot ETFs on Thursday (23rd) Eastern Time, namely the 19b-4 documents submitted by Cboe, NYSE Arca and the Nasdaq Exchange. bringing the potential listing of these funds one step closer. Bloomberg Intelligence analyst James Seyffart said on the .

Kabosu, the original Dogecoin meme, passes away

According to a recent update shared by owner Sato on his blog, Kabosu, the Dogecoin meme figure, passed away on the morning of Friday (24th). Sato said she will hold a farewell event for Kabosu on May 26 from 1 to 4 p.m. at the Kaori Flowers flower shop in Kozu no Michi, Narita City, Chiba Prefecture, Japan.

The founder of Friend.tech hinted at leaving the Base ecosystem, and the token FRIEND plummeted by more than 20%

Racer, the co-founder of the Web3 social network Friend.tech, publicly stated on the social platform today that the relationship between the Friend.tech team and Base has always been unstable, and expressed his willingness to work on ways to safely migrate Friend.tech to other networks. Pay $200,000.

Ethereum is expected to implement the Pectra upgrade in 2025 Q1, covering 11 improvement proposals including EIP-7251

Following the successful implementation of the Dencun upgrade in March 2023, Ethereum core developers decided at an executive level meeting that they plan to launch the Pectra upgrade in the first quarter of 2025. Pectra represents the next major update to Ethereum, which will integrate the Ethereum Virtual Machine Object Format (EOF) and cover approximately 11 improvement proposals that will enhance the performance of layer 1 and layer 2 EVM code.

Kaiko: Grayscale Ethereum Spot ETF will experience an average daily capital outflow of US$110 million if it follows the GBTC model

Grayscale’s Ethereum Trust (ETHE), which has not yet converted to an ETF, could be in trouble if it follows a similar pattern to its Bitcoin Trust (GBTC) in the first month after the switch, according to the research team at cryptocurrency data provider Kaiko. There will be an average daily capital outflow of US$110 million.

Argentinian and El Salvadoran regulators meet to exchange experiences on Bitcoin adoption and regulation

Argentina’s securities regulator, the National Securities Commission (CNV), and El Salvador’s National Commission for Digital Assets (CNAD) held a meeting last week to discuss cryptocurrency adoption and regulatory issues in both countries.

Mt.Gox related wallet transferred a large amount of Bitcoin, official confirmed: preparing for partial repayment this year

Mt.Gox's related wallets saw large-scale Bitcoin transfers this week, triggering panic about potential selling pressure. Officials later confirmed in an open letter that these on-chain transactions were for creditors on October 31. Prepare for repayment. But former CEO Mark Karpelès said there would be no immediate Bitcoin sales.

The above content does not constitute any financial investment advice. All data comes from GT Radar official website announcements. Each user may have slight differences due to different entry and exit prices, and past performance does not represent future performance!

This article GT Radar Radar Weekly Report 5/29: Is Ethereum and Bitcoin market dominance expected to rotate? First appeared in Zombit.