While bitcoin is busy going up and down with bears still failing to break $10,000, ethereum has quietly remained stable against the dollar while slowly rising up now and then.
Experiencing only brief price falls with loses quickly recovered, Ethereum is the only top crypto near all-time highs. Fairly surprising, considering a very stormy January, with just yesterday’s events probably worth a year in itself.
But ethereum’s story is very different when it comes to the bitcoin trading pair. Eth has been rising against BTC for now two months and, very interestingly, the ratio’s bottom coincides with btc’s all time high (ATH) against the dollar.
That might suggest the market is recalculating the two. In which case, if ethereum’s ratio rises once again to its ATH, it would be pretty close to overtaking bitcoin in market cap.
Something that would be very historic for no digital currency has ever done it, but even now, the gap between the two keeps closing, with just $65 billion needed for eth to overtake btc.
A surprising stat might be trading volumes for eth’s trading pairs. The dollar dominates of course at 36%, but really USDT should be accounted within it, bringing it to a majority of the eth market at 52%.
The BTC pair then handles most at $800 million trading volumes, twice that of South Korea and four times more than the Euro.
That means bitcoin, while having no where near as much influence as it used to over eth, still does have some influence. Ethereum’s rise against bitcoin, therefore, might suggest the market is a lot more bullish on eth than on btc.
The reason might be because bitcoin has been dominating for months, until it reached the high of $20,000. It then crashed down 50%, while eth is barely down 10% from its all-time high.
That might be because bitcoin seems to be doing what eth did in May 2017. After it reached the then brief all-time high of $420, eth crashed 50% and then went sort of sideways, giving the show to bitcoin.
Now, the show might be given back to eth, not least because it is nearly February with spring on its way, a time eth has shined since it was invented.
The past, of course, doesn’t predict the future. But the recent market action does seem to be saying something. What that is exactly, time will tell.