The competition between Bitcoin (BTC) and Ethereum (ETH) has reached a significant stage as we approach the end of 2024. Despite Bitcoin’s recent record price, analysts continue to watch Ethereum closely and focus on the bullish trends that the anticipated altcoin season could create for Ethereum.
“Market dynamics Ethereum$ETH
“This marks a critical turning point for the world, particularly as we try to break free from lower levels of dominance,” he commented.
This struggle for supremacy between Bitcoin and Ethereum has become increasingly evident as we approach the end of 2024. Changes in market dynamics and the testing of new thresholds make this competition even more important.
Bitcoin has reached a new all-time high (ATH) by demonstrating a strong dominance in the cryptocurrency market. Current data shows that Bitcoin’s market dominance is much higher than Ethereum. While Bitcoin has a market dominance of around 56%, Ethereum’s dominance has fallen to 12.8%.
This dominance can also be seen from the fact that a large portion of Bitcoin addresses are profitable; according to IntoTheBlock’s data, 98% of Bitcoin addresses are profitable, while for Ethereum this rate remains around 88%.
While Bitcoin’s dominance is quite high, Ethereum’s potential for recovery is also on display. A critical period may begin for Ethereum in the coming months, as the anticipated altcoin season could shift market sentiment in favor of ETH. The ETH 2.0 update is also drawing investors’ attention; although this update has not yet fully met expectations, it could lead to greater interest in the network and increased investor participation over time.
Ethereum’s ongoing upgrades and potential developments have the power to attract buyers, which could help propel Ethereum toward its former ATH of $4,000.
Despite Bitcoin and Ethereum continuing to gain value, market indicators are pointing to some potential price corrections. The NVT (Network Value to Transaction Value) ratio has increased for both cryptocurrencies. This suggests that both assets may be overvalued at the moment and a market correction may occur in the near term.
In addition, Bitcoin’s exchange balances have decreased, while Ethereum’s exchange balances have increased. This reflects differences in investor sentiment; Bitcoin investors prefer to accumulate, while Ethereum investors are more actively selling. The increasing selling pressure in Ethereum could lead to a price drop to $3.38. On the other hand, Bitcoin’s strong buying momentum has carried it above the $96,000 level, which could be a sign of a rally towards $100,000.
Bitcoin and Ethereum have also been notable for their significant developments through exchange-traded funds (ETFs) throughout 2024. Bitcoin saw strong institutional interest, reaching $1.3 billion in ETF inflows on November 7. Ethereum also saw similarly significant ETF inflows, reaching $295 million on November 11. Both cryptocurrencies continue to grow in appeal through ETFs, and these developments continue to be a major focus for analysts regarding the future of market valuations and investor interest.
As the competition between Bitcoin and Ethereum heats up even more in 2024, market dynamics continue to change and both sides create new strategies.