The post Can Ethereum Beat Bitcoin? Crypto Expert Reveals Surprising Insights appeared first on Coinpedia Fintech News
Cryptocurrency strategist Benjamin Cowen has shared his insights on the potential performance of Ethereum (ETH) compared to Bitcoin (BTC) in the near future. In a recent YouTube video, Cowen highlights key trends in the crypto market that all investors and traders should turn their focus toward.
Bitcoin Dominance On The Rise
Cowen points out that the Bitcoin dominance chart (BTC.D), which indicates the proportion of the total crypto market capitalization held by Bitcoin, is showing a strong upward trend; suggesting that the dominance of the crypto is increasing in the markets.
On the other hand, he observes that the Ethereum versus Bitcoin chart (ETH/BTC) is moving in the opposite direction. He notes that the chart is consistently forming lower highs, indicating that Ethereum’s performance relative to Bitcoin is declining.
Predictions For The “Flippening.”
Cowen cautions against premature conclusions about the “flippening,” a hypothetical event in which Ethereum surpasses Bitcoin in market capitalization. He explains that each time the ETH/BTC chart forms a lower high, there is often a surge of excitement in the community, with people speculating that the flipping is imminent. However, history has shown that these lower highs have not led to a significant shift in the market dynamics.
Also Read: Top Reasons Why Ethereum Price May Still Make it to $2000 in the Next Few Days! – Coinpedia Fintech News
Liquidity Hampers ETH/BTC Decline
Cowen also discusses why the ETH/BTC pair may not be experiencing as steep a decline as it did during the bear market of 2018-2019. He attributes this to the increased liquidity present in the system today. The abundance of liquidity has made it more challenging for the Federal Reserve, the central bank of the United States, to swiftly remove excess liquidity from the market. Nevertheless, Cowen suggests that liquidity is gradually being reduced.
Overall, Benjamin Cowen’s analysis indicates that while Bitcoin’s dominance in the crypto market is increasing, Ethereum’s performance relative to Bitcoin has been on a downward trend. He advises caution and highlights the historical pattern of lower highs not leading to the anticipated flipping. He also emphasizes the impact of increased liquidity, which has slowed down the rate of decline for the ETH/BTC pair compared to the previous bear market.
