Recently, the ETH ecosystem has surged, with short-term funds flowing from BTC into Ethereum. Since November 21, the ETH/BTC exchange rate has started to rise from the historical low of 0.0318.
It can be clearly seen in the price that the trends of Ethereum and BTC have formed a significant opposition, indicating a seesaw effect of mainstream market funds. ETH is likely to lead the market for a while!
News:
November 26 news, Nick Tomaino, founder of 1confirmation, stated in a post on X, "Ethereum is the world's first 'triple attribute asset':
· Capital asset: Represents ownership shares of the developer ecosystem driving crypto innovation (such as DeFi, NFTs, prediction markets, decentralized social networks, etc.).
· Store of value: Inflation rate is lower than BTC, and it is the underlying asset of decentralized finance.
· Yield asset: Annualized yield is approximately 3%
Wintermute analysts state that funds are shifting from BTC to ETH, with a surge in derivatives market activity.
Over the weekend, the open contracts of Ether surged, and implied volatility also increased, with a clear rise in demand for call options, indicating that confidence among derivatives traders is continuously strengthening.
Analysts state that the shift from Bitcoin to Ether is characterized by a sharp rise in Ether's implied volatility, with bearish and bullish skew reaching the highest level in 12 months, indicating that investors have a very strong preference for upside risk.
According to Wintermute analysts, traders are actively driving the market higher through upward buying.
Wintermute analysts pointed out in their weekly cryptocurrency market update: "In the past few trading days, funds have flowed into Ether, as the open contracts on exchanges have surged to historic highs over the weekend."
A significant announcement was made in Hong Kong.
The ZhongAn Bank app now supports buying and selling Bitcoin and Ethereum within the bank app, which is undoubtedly groundbreaking. Who says having an account is not important? Who says identity is not important? This is undoubtedly something that cryptocurrency enthusiasts in mainland China can only dream of.
Regarding ETF data
From the weekly data of the ETH spot ETF, although the data on November 23 was good, it still cannot escape the fact that the ETH data declined significantly in the eighteenth week. There was a fundamental change in American investors' total holdings of ETH last week.
From a net inflow of 169,498 BTC in week twelve, to a net reduction of 32,640 BTC currently, while American investors' net purchasing power only maintained last week's 5.5%, investor sentiment has significantly retracted at least on the ETH front.
From the detailed data, BlackRock net increased its holdings by 17,268 coins last week, ranking first. However, it is noteworthy that VanEck ranked second in net increases, although not by much, at least it is in an accumulation state, while other institutions either had net outflows or zero changes within a week, making it the worst week since the election.
However, the data on November 23, Friday, showed a significant increase, which makes one cautious. Perhaps the FOMO sentiment for ETH might rise again.
Speaking of my personal opinion, just as I mentioned during the data report on Friday, since top institutions like BlackRock are optimistic, they may have a need for ETH.
Where might it be? It could be the launch of Ethereum ETF staking. If the ETF staking gets approved, it would undoubtedly be a huge benefit for ETH and the ETF issuers.
Because once approved, issuers of Ethereum ETFs like BlackRock and Fidelity will earn astronomical interest annually. BlackRock currently holds about 600,000 ETH, and they are using clients' money to earn interest for themselves. Once staking starts, all ETF sales will undoubtedly push Ethereum to clients.
In summary, ETH can currently be confirmed as a low-odds target. The most important aspect of investing is controlling drawdowns and managing risks. Currently, ETH has a high marginal safety.
There is an expected upgrade benefit in March, which is likely to explode and catch up with BTC in January or February. Long-term, as mentioned above, the start of staking may make ETH reach over $10,000 without much suspense.
Walking with Mo, preaching web3, I am Xi Mo, a guide dedicated to bringing you into the web3 industry, turning main jobs into side jobs, side jobs into unemployment (financial freedom), and striving for the goal of increasing assets after achieving financial freedom.
A year ago, we created a web3 personal finance reading book for paid students, titled 'Xi Mo's Crypto Perspectives', which contains over 1,000 pages recording a collection of 320,000 words on crypto wealth. Now I'm giving it away for free.
Click my avatar to receive a free electronic version of Xi Mo's crypto wealth perspectives.