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The world’s largest cryptocurrency Bitcoin (BTC) has been holding up well against major selling pressure in the market. As Ethereum and other altcoins have been ceding ground, Bitcoin’s share in the overall crypto market has shot past 50%, up from 38% at the start of 2023.
Bitcoin’s superior performance compared to alternative cryptocurrencies has strengthened its historical reputation as a safe haven asset, or at the very least, a valuable diversification option for traditional market investments. This perspective was shared by Caroline Mauron, co-founder of the digital-asset derivatives liquidity provider, OrBit Markets.
In total, Bitcoin has seen a 66% increase in value this year, whereas Ether has experienced a 32% rise. The contrast becomes even more pronounced when examining data from September 15, 2022, following Ethereum’s network upgrade known as the Merge, which had kept investors in suspense for several months. In its report, Kaiko noted:
“In fact, Ether has been massively underperforming the broad market since the Merge, with both the ETH/BTC price and volume ratio trending downwards over the past year. Ether’s underperformance is likely due to the ongoing impact of the bear market, which historically has seen traders turn to Bitcoin.”
At press time, Bitcoin (BTC) is trading 1.10% down at a price of $27,599 with a market cap of $538 billion. On the 2-hour chart, the Bitcoin price has given a breakdown from the symmetrical triangle chart pattern. For now, the next support level for Bitcoin is $26,200.
#Bitcoin has showcased a breakdown from a symmetrical triangle on its 2-hour chart!
Given the triangle's y-axis height, we might anticipate a 5% correction in $BTC, potentially heading to $26,200. pic.twitter.com/SdrrjcX1hs
— Ali (@ali_charts) October 9, 2023
Bitcoin Shines Amid Ethereum Underperformance
The second-largest cryptocurrency by market value has seen a decline of approximately 18% since June, whereas Bitcoin’s drop during the same period was roughly half of that. Ether’s share of the total market capitalization in the $1 trillion crypto market has decreased from around 18.4% at the beginning of the year to 17.8%.
In recent weeks, concerns have arisen regarding Ethereum’s growth and future prospects. Activity and transaction fees on the network have decreased, and the coin’s supply has started to increase again after several months of deflation. Worries about centralization within the Ethereum network have also been on the rise.
Despite the introduction of exchange-traded funds (ETFs) focused on Ether futures in the US in October, they have not gained much traction, which has been seen as a setback for the argument that crypto adoption is inevitably expanding.
At press time, ETH price is trading 2.73% down slipping under $1,600 levels. Starting from February 2023, prominent Ethereum holders, often referred to as “whales,” have leveraged the rising prices to either sell off or distribute more than 5 million ETH, which is approximately valued at $8.5 billion. What stands out is that this trend of selling persists, without any immediate signs of a transition towards accumulating ETH.
Since February 2023, #Ethereum whales have capitalized on surging prices, offloading or redistributing over 5 million $ETH — equivalent to roughly $8.5 billion.
Notably, this selling trend continues with no current indication of a shift towards #ETH accumulation yet. pic.twitter.com/Oz3Lct3hbL
— Ali (@ali_charts) October 9, 2023
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