Bitcoin [BTC] and Ethereum [ETH] have performed well recently, with the former hitting an all-time high. While both top currencies remain closely watched, BTC and ETH have set their sights on new targets — $100,000 and $4,000, respectively.
But which cryptocurrency is more promising?
Bitcoin is in the lead!
As mentioned above, Bitcoin reached its ATH in November 2024. In contrast, ETH's ATH was set during the cryptocurrency bull market in November 2021.
Despite many expecting the ETH 2.0 upgrade to change the situation, that is not the case. Nonetheless, ETH currently seems poised to hit an all-time high in the coming months.
With BTC hitting an all-time high a few days ago, more BTC investors are taking profits. According to IntoTheBlock, 98% of Bitcoin addresses are 'in the money', compared to 88% for ETH addresses.
Another aspect of Bitcoin's evident advantage is its dominance. AMBCrypto found that, although BTC has declined, its dominance remains far higher than ETH.
Specifically, while Bitcoin's dominance remains above 56%, ETH's dominance has slightly decreased in the past 24 hours to 12.8%.
Which indicators suggest...
Looking to the future, both cryptocurrencies have issues. For example, the NVT ratio of Bitcoin is increasing. A similar rise is also seen in the ETH chart. This suggests that both cryptocurrencies are overvalued, implying a possible correction in the short term.
However, the indicator favorable to BTC is the exchange balance. When ETH's balance increases, Bitcoin's balance on exchanges tends to decrease.
This means that investors are still considering buying BTC, while ETH investors are selling. Generally, increased selling pressure leads to price corrections.
Given the rising selling pressure of Ethereum, it would not be surprising if the king of altcoins fell to the support level around $3.38 in the event of a significant correction.
On the other hand, the increasing buying pressure of BTC has pushed the token above the resistance level of $96,000 again. This suggests that this king token may soon begin to rise towards $100,000, thereby setting a new high.
Nevertheless, ETH investors should not lose hope, as ETH has the potential to surpass BTC in 2025. As the market gains bullish momentum, some speculate that a new altcoin season may arrive in the coming weeks or months.
If this happens, ETH may provide investors with more profits than BTC.
Bitcoin ETF and Ethereum ETF
When comparing these two cryptocurrencies, discussing their respective ETFs becomes crucial, as they are one of the most talked-about topics for 2024.
Interestingly, both cryptocurrencies perform well in this regard. During the significant price increases of BTC and ETH, their ETF inflows reached historic highs. Specifically, on November 7, Bitcoin ETF inflows surpassed $1.3 billion.
Similarly, the inflow of Ethereum ETFs surged to a historic high of $295 million on November 11.
Although these two cryptocurrencies serve different purposes, they both possess strong market caps. Only time will tell which cryptocurrency surpasses the other in terms of market cap or profitability.
