Market intelligence firm Glassnode says there is one main reason why Ethereum (ETH) is lagging behind Bitcoin (BTC).
Glassnode says in a new analysis that Ethereum has not seen the same level of capital growth from new buyers as Bitcoin in the current market cycle that has pushed the crypto king to all-time highs (ATH). Ta.
Analysts say the approval of the Spot Bitcoin exchange-traded fund (ETF) was likely the main driver of the increase in short-term holders who purchased BTC over the past 155 days.
“In the run-up to Bitcoin’s all-time high on March 14th, there was a notable increase in speculative activity. Specifically, we have observed an accumulation of capital among short-term holders (STH), which has increased significantly over the past six months. USD assets held in coins moved within are approaching $240 billion, close to the ATH. However, this trend is not reflected in ETH, and the price of ETH has not yet surpassed the 2021 ATH. yeah.
Bitcoin’s STH realization ceiling is roughly at the same level as the peak of the previous bull market, while ETH’s STH realization ceiling is barely up from its lows, suggesting that new capital inflows have been noticeably lackluster. There is. In many ways, this lack of new capital inflows reflects the poor performance of ETH compared to BTC. This is likely due in part to the attention and access brought by Spot Bitcoin Exchange Traded Funds. ”
The Realized Cap metric records the moving price of each coin and aims to measure how many holders are making profits or losing money.
Analysts have suggested that ETH could see significant inflows if the U.S. Securities and Exchange Commission (SEC) approves the Spot Ethereum ETF application later this month.
“The market is still awaiting the SEC's decision on the approval of a series of ETH ETFs, expected at the end of May.”
At the time of writing, Bitcoin was trading at $61,454, down more than 2.6% in the past 24 hours. Ethereum, on the other hand, was trading at $2,970 at the time of writing, down more than 2.7% on the day.
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