Bitcoin and Ethereum have made impressive progress recently, with Bitcoin reaching an all-time high. Although both top coins are receiving special attention, BTC and ETH are both aiming for new targets — $100k and $4k respectively.
So, which cryptocurrency is more promising?
Bitcoin is dominant
As mentioned, Bitcoin set an all-time high in November 2024, while Ethereum reached its ATH during the bull run of November 2021.
Although many are optimistic about the ETH 2.0 upgrade helping ETH break out, this has not yet happened. However, Ethereum currently seems to be on the right track to approach its ATH in the near future.
Since BTC reached its ATH a few days ago, the majority of Bitcoin investors have been in profit. According to data from IntoTheBlock, up to 98% of Bitcoin addresses are in profit, while this rate for Ethereum is 91%.
Another factor where Bitcoin excels is its market dominance. Despite a slight decrease, BTC's dominance remains strong, far exceeding ETH. Specifically, while Bitcoin's dominance remains above 56%, ETH has slightly dropped to 12.8% in the past 24 hours.
Notable indicators
Looking ahead, both coins face challenges. For example, Bitcoin's NVT ratio (Network Value to Transactions) has increased. A similar increase is also seen in Ethereum's chart, indicating that both coins may be overvalued, which could lead to short-term corrections.
However, the indicator showing a clear advantage for BTC is the balance on exchanges. While the Bitcoin balance on exchanges is decreasing, the Ethereum balance is increasing. This suggests that investors are still inclined to buy BTC, while ETH investors are selling. As selling pressure increases, the value of the coin may be adjusted.
With increasing selling pressure, it is not hard to predict that if there is a major correction, ETH may drop to the support area near $3.38.
Conversely, buying pressure on Bitcoin has pushed the price above the resistance level of $96k. This indicates that BTC may begin a strong growth phase, heading towards the $100k mark and establishing a new ATH.
However, Ethereum investors should not lose hope, as there is a possibility that ETH's market cap will surpass BTC's by 2025. If the market continues to grow strongly, many predictions suggest that a new altcoin season could occur in the coming weeks or months, providing significant profit opportunities for Ethereum.
Bitcoin and Ethereum ETFs
When comparing Bitcoin and Ethereum, an important factor to note is their ETFs, which have been a hot topic in 2024.
Both of these coins have achieved outstanding success in attracting capital into ETF funds. Specifically, capital inflows into the Bitcoin ETF exceeded $1.3 billion on November 7, while capital inflows into the Ethereum ETF also reached a new record of $295 million on November 11.
Although Bitcoin and Ethereum have different purposes, both possess strong market capitalizations. Which coin will outperform in market value or profitability will only be answered by time.