The post Here’s Why Ethereum Could Be The Best Buy Instead Of Bitcoin appeared first on Coinpedia Fintech News
Ethereum’s price has seen a monthly drop of 8% since the approval of the Ethereum ETF, now standing at $3,367. In comparison, Bitcoin (BTC) has fallen nearly 12% in the same period, currently trading at $60,950.
This notable shift in sentiment suggests that Ethereum (ETH) may be setting up for better performance compared to Bitcoin (BTC). Here are the key factors favoring Ethereum over Bitcoin.
Key Factors Favoring Ethereum
Absence of Mt. Gox Impact
One of the primary reasons for the growing optimism around Ethereum is its immunity from the Mt. Gox liquidation process. While Bitcoin holders are concerned about the potential influx of BTC from Mt. Gox repayments, Ethereum investors are not facing this issue, providing a more stable environment for ETH.
Maybe the market is beginning to realize that the set up for $ETH is better than $BTC?– Mt Gox has no $ETH– The Germans aren't selling $ETH– Ethereum doesn't have constant miner sell pressure to pay for expenses– ETF ALSO coming to $ETH– Supply shock bigger on ETH vs BTC pic.twitter.com/fgNUx5OkEU
— Kyle Reidhead | Milk Road (@KyleReidhead) June 24, 2024
German Investors Holding Onto Ethereum
Another factor is the behavior of German investors, who seem to be holding onto their Ethereum assets, unlike Bitcoin, where some selling pressure is evident. This trend indicates stronger confidence and stability in the Ethereum market.
No Miner Sell Pressure On ETH
Ethereum’s transition to a proof-of-stake model has significantly reduced the sell pressure from miners. Unlike Bitcoin, where miners regularly sell a portion of their holdings to cover expenses, Ethereum does not face this constant sell-off, which can help maintain its price.
Upcoming ETF’s
The crypto community is also excited about the potential introduction of an Ethereum ETF. Similar to how Bitcoin ETFs have positively impacted BTC’s market performance, an Ethereum ETF is expected to attract more institutional investors, driving up demand and potentially increasing ETH’s value.
Larger Supply Shock for Ethereum
Finally, analysts highlight that the potential supply shock for Ethereum is more significant than for Bitcoin. With fewer new ETH being mined and increasing interest from institutional investors, the supply of Ethereum on exchanges is decreasing. If demand rises, this reduced supply could lead to a substantial price increase.
