- MicroStrategy CEO Michael Saylor is influencing the crypto community with his Bitcoin halving hype.
- Bitcoin halving reaches peak popularity in Google Trends data.
- Greg Magaddini says Ethereum has the potential to generate higher returns than Bitcoin regardless of the halving.
The Bitcoin (BTC) halving is the centerpiece of almost every discussion in the cryptocurrency market on Wednesday. While many are predicting another record bull run for the largest digital asset, industry observers believe Ethereum (ETH) will be the dominant exchange regardless of the halving narrative.
Read more: Bitcoin halving is just days away.Here's what key members of the cryptocurrency community are saying
Bitcoin halving theory is heating up
With less than nine days left until Bitcoin's halving, members of the crypto community are bracing for a possible bull run given similar price increases from past halvings. Many members of the crypto community, including MicroStrategy CEO Michael Saylor, share bullish sentiment on X as the halving approaches.
As the hype continues to grow, searches for the keyword “Bitcoin halving” reached a peak in popularity on Monday, currently sitting at 94 points, according to Google Trends data from the past 30 days. The Netherlands is the country most interested in the Bitcoin halving, followed by Switzerland and Austria.
Also read: Crypto market begins recovery as runes gain attention ahead of Bitcoin halving
Ethereum could outperform Bitcoin
But despite Bitcoin's growing popularity as the fourth halving approaches, some believe Ethereum has a better chance of generating profits.
Greg Magadini, director of derivatives trading at Amberdata, said in a recent article on CoinDesk that the halving narrative is already priced into short-term Bitcoin options. He analyzed that while Ethereum may be lagging recently, it may be poised for significant growth in the future. He drew a paper comparing Bitcoin derivatives to Ethereum.
One of the key points he made is that traders are confident in the halving and are unlikely to be surprised by it, unlike the potential for approval and adoption of the Ethereum ETF, which is an unknown. . On April 26th, he stated, “Bitcoin options on call wings are priced at a significant premium compared to Ethereum call wings, while Ethereum put wings are priced at a premium compared to BTC put wings.'' “I'm doing it,” he said.
Read more: Bitcoin halving less than two weeks away, traders likely to buy rumors sell news
As a result, the halving is boosting confidence among BTC traders, while the unlikely ETH approval and SEC investigation are causing ETH pessimism. The rise in Bitcoin's CME open interest rate above Ethereum's stagnant open interest rate makes it clear that the US market has not yet begun to build significant positions in ETH as well as BTC. So even if spot ETFs are later approved, “buyers haven't flocked to Ethereum yet,” Gregg said.
Greg went on to say that rotation to Ethereum is better than “selling the news” due to factors such as decreasing Ethereum supply, lower fees associated with the Dencun upgrade, and facilitation of real-world assets in L2 and L3. He said it will prove to be a good strategy.
Analysts at Glassnode and CoinDesk share a similar belief that the upcoming fourth Bitcoin halving may already be priced in.
