October 31, 2024 – (New York) Bitcoin (BTC) has gained an impressive 8.5% against the US dollar this week, moving perilously close to its all-time high of $73,794. In contrast, Ethereum (ETH), the second largest digital currency, remains relatively calm, reflecting the widening gap between the two leading cryptocurrencies.
On Tuesday, BTC approached $73,600 per coin, marking a remarkable return to market power, and now stands at 58.6% of the cryptocurrency's $2.43 trillion market capitalization. ETH, on the other hand, has only increased by 5% over the past week, dropping its market share to 13.4%.
This year has proven to be a tumultuous year for Ethereum, as it has fallen over 30% against Bitcoin in 2024 alone. Over the past year, ETH has fallen over 28% compared to BTC. Additionally, the value of ETH has weakened relative to gold, with gold currently trading above Ethereum's current price of $2,698, significantly from the $4,878 record achieved on November 10, 2021. It's far away.
While Bitcoin is inching closer to regaining its former glory, Ethereum has quite a ways to go and needs an increase of over 45% to reach its previous peak. This struggle is further exacerbated by the emergence of various Layer 1 (L1) and Layer 2 (L2) blockchain solutions that are increasing competition in the cryptocurrency space.
As Bitcoin continues its upward trajectory, the divergence between these two digital assets becomes increasingly pronounced. Investors are eagerly watching to see if Ethereum can regain its position, or if Bitcoin's lead will further strengthen and shape the future outlook of the crypto market.
