The crypto-space has been dominated by Bitcoin and Ethereum for a few years now, with the king coin often taking center stage over the said period. The last few weeks and months, however, have seen the canvass of the crypto-space change completely. For starters, Ethereum seems to be steadily decoupling from Bitcoin, having started to forge a new path for itself on the price charts.
On a recent podcast, Su Zhu and Kyle Davies, founders of crypto hedge fund Three Arrows Capital, reiterated their bullish position on the market’s flagship altcoin.
Commenting on their current trading strategy with respect to Ethereum, Su Zhu said,
“We try to be as intuitive and as macro as possible…This is in a backdrop where Ether has probably had its strongest tokenomics upgrades as a base money that it has ever had in its history.”
Source: TradingView
Bitcoin’s market dominance has witnessed a steep decline since April, with the same translating into a boon for Ethereum and the rest of the market’s altcoins. Highlighting the growing acclamation of Ethereum, Zhu added,
“In the backdrop of emerging market on-ramps, ETH is already outpacing Bitcoin as people’s first buy. In fact, DOGE is outpacing Bitcoin in some of these on-ramps as well. So, this environment is incredibly bearish for Bitcoin dominance.”
Source: Etherscan.io
There are a host of reasons why ETH has been able to flip BTC of late. First of all, retail investors have gradually started inclining themselves more towards Ethereum and have begun resonating with its intermittent value, as opposed to Bitcoin. Secondly, institutions want to hold what people own and are hence, are shifting towards Ethereum too.
Third, Bitcoin just concluded its northbound trajectory and is in its correction phase. Ethereum stepped up at the right time and managed to garner the community’s attention by registering consecutive ATHs over the past few weeks.
Shedding light on what to expect from the alt in the coming days, Davies commented,
“Before something hits an all-time high again, especially after a big flush out, there’s always a question of is this a dead cat bounce. People don’t realise that until you start breaking all time highs.”
He concluded by stating,
“For ETH now, when people wake up, they’ll load up. Anytime we are looking at ATHs. It gets me excited.”
Interestingly, a recent analysis had highlighted that ETH might subject itself to a correction and could also fall below the $3,000-mark, before it continues its upward trajectory. At press time, however, the altcoin was trading around the $4,000-range, despite significant corrections over the last 72 hours.
Source: Coinstats
