Ethereum May Hit New All-Time Highs Before Bitcoin, Says Analyst
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Spot ETFs Boosting Market Sentiment
The crypto community is eagerly awaiting the launch of spot ETF products for Ethereum in the United States. These products, while not yet fully approved for trading, have received a notional green light from regulators following a surprising policy reversal. This development is expected to diminish Bitcoin’s dominance in the overall crypto market cap, providing more growth opportunities for altcoins like Ethereum.
Market Dynamics and Predictions
Van de Poppe believes that Bitcoin’s market dominance has peaked at 58% this cycle, suggesting that altcoins, particularly Ethereum, are undervalued compared to Bitcoin. He predicts that Ethereum will likely reach a new all-time high soon. Currently, ETH/USD is trading at around $3,850, still below its record of $4,900 set in late 2021.
Bitcoin ETF Milestone
The Bitcoin ETF landscape recently saw a significant shift as BlackRock’s IBIT surpassed the Grayscale Bitcoin Trust (GBTC) in BTC holdings for the first time. As of May 28, IBIT accumulated 288,670 BTC compared to GBTC’s 287,450 BTC. This "flippening" has been a milestone anticipated by market observers for some time. Since its conversion to a spot ETF in January, GBTC has seen a steady decline in assets under management, dropping from nearly 620,000 BTC to a 53% lower tally.
Investor Interest and Market Shifts
Interest in Bitcoin ETFs has surged recently, with net positive inflows for ten consecutive days. Meanwhile, Grayscale has faced internal upheaval, including the resignation of CEO Michael Sonnenshein. This shifting landscape suggests a dynamic and evolving market, with Ethereum potentially leading the charge in the altcoin space.
Conclusion
Ethereum’s potential to hit new all-time highs before Bitcoin highlights the evolving dynamics within the cryptocurrency market. With the anticipated approval of Ethereum spot ETFs and a shifting market focus towards altcoins, investors are keenly watching ETH’s trajectory for the next significant price movement.