With Ethereum continuing to outperform Bitcoin vs USD in 2021, crypto analyst and investor Qiao Wang, a former Director of Products at Messari, explains why “we have to acknowledge a nonzero probability of ETH flippening BTC around July.”
Currently (as of 09:15 UTC on May 4), Bitcoin is trading around $56,196, which means that it is up 93.78% vs USD in 2021; meanwhile, Ethereum is trading around $3,356, which means that it is up 355.35% vs USD in the year-to-date period.
YTD BTC-USD Chart (Bitstamp) by TradingView
YTD ETH-USD Chart (Bitstamp) by TradingView
Earlier today, Wang explained that although he does not believe that there is a high probability of $ETH flippening $BTC by July, which is when Ethereum’s London upgrade is due to go live on the mainnet, we should acknowledge that there is a nonzero chance of this happening because of three reasons: continuous spot buying of Ethereum (by both retail and institutional investors), rotation of funds from $BTC to $ETH (as people start to get frustrated with Bitcoin’s relatively lacklustre performance in the past few weeks and as they better understand Ethereum’s huge growth potential), and the excitement around EIP-1559, which is the most important part of the London network upgrade.
Based on how euphoric the ETH camp is in the replies and how triggered the BTC side is, yeah, I don’t think the probability is high.
— Qiao Wang (@QwQiao) May 3, 2021
A few fours later, New Zealand based crypto analyst and influencer Lark Davis ran a Twitter poll.
Can #ethereum flip #bitcoin market cap one day?
— Lark Davis (@TheCryptoLark) May 4, 2021
As of 08:30 UTC on May 4, with 7,245 votes cast, the majority of those who have voted seem to believe that one day Ethereum will have a greater market cap than Bitcoin.
Messari research analyst Ryan Watkins, who believes that “there‘s never been an asset before like ETH”, explained why he is so excited about ETH 2.0.
I don’t think it’s hyperbolic to say there‘s never been an asset before like ETH. https://t.co/eYoJkjDbB8
— Ryan Watkins (@RyanWatkins_) May 4, 2021
Crypto analyst Josh Rager offered this technical analysis of Ethereum’s latest price action.
Just look at the chart for $ETH
Over the past ten days, price is up 60% with a price gain of $1300+
It’s never seen a price upside like this in terms of USD+ in this short amount of time
I want to see some consolidation/pullback before I jump back in with any major buys pic.twitter.com/hYkOWIUEWG
— Rager 📈 (@Rager) May 4, 2021
According to Bybt (as of 09:44 UTC on May 4), there were around $523 million $ETH positions liquidated across crypto derivatives exchanges (vs around $443 million $BTC positions).
24-hour Liquidation Data via Bybt.com (as of 09:44 UTC on May 4)
And finally, Vance Spencer, a co-founder of Framework Ventures, offered this interesting observation:
What happens when Coinbase tells 56M Americans, who have 9M ETH on Coinbase, that they can stake and earn 5-10% on their Ethereum?
— Vance Spencer (@pythianism) May 3, 2021
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured Image by “vjkombajn” via Pixabay.com