Ethereum Soars: 12% Weekly Surge Leaves Bitcoin in the Dust
Ethereum Gains Ground Against Bitcoin Amid Rising ETF Inflows
Ethereum’s Rise to Prominence
Ethereum is gaining ground against Bitcoin thanks to the inflow of funds based on U.S. spot exchange-traded funds (ETFs).
According to CoinMarketCap, a global virtual asset market platform, Ethereum showed a rise of about 12.44% over the past week. During the same period, Bitcoin rose by 5.58%.
Market Analysis
Trading firm QCP Capital analyzed, “Ethereum showed a greater uptrend compared to Bitcoin as the ETH/BTC ratio rose from 0.038 to 0.0415 today,” and “Ethereum implied volatility is also higher than Bitcoin implied volatility, indicating high volatility along with bullish sentiment.”
In addition, the inflow of funds into Ethereum spot exchange-traded funds (ETFs) also showed a positive trend. On the 19th and 20th, there was an inflow of $5.2 million (approximately KRW 7 billion) and $2.9 million (approximately KRW 3.9 billion), respectively.
Altcoin Season on the Horizon
Bitcoin prices have previously risen as investment sentiment toward high-risk, high-return assets has been driven by the US interest rate cut. Following Bitcoin’s rise, some are suggesting that the altcoin season is just around the corner.
Glassnode co-founders Jan Happel and Yann Allemann analyzed that “typically, a rally in cryptocurrencies starts with Bitcoin, followed by Ethereum (ETH) and other cryptocurrencies in order of market cap,” and that “the market is currently on the verge of an altcoin season.”
Increasing Adoption of Virtual Assets
There are also claims that the adoption of virtual assets by financial industry figures is rapidly increasing. Matt Hougan, Chief Investment Officer (CIO) of Bitwise, a U.S. virtual asset management company, analyzed, “Currently, influential figures in the financial industry are directly investing in virtual assets. More and more people are adding virtual assets to their personal portfolios.”
He continued, “When we asked financial consultants attending the Barron’s Advisor 100 Summit in Palm Beach, Florida last week whether they owned virtual assets, nearly 70 percent raised their hands,” adding, “That’s a significant increase from the 10-20 percent response rate three years ago.”