Based on the year-to-date performance and their drawdown from their all-time highs (ATHs), Bitcoin (BTC) and Ethereum (ETH) have performed very similarly. While BTC has risen by 25.5% for the reason that starting of the 12 months, ETH has climbed by about 27%. From its ATH, Bitcoin has declined by 69.9%, while Ether is down by 68.9%.
Despite this very comparable performance, the controversy persists that Ethereum may replace (“flip”) Bitcoin as the most important cryptocurrency by market cap inside the following few years or in the following bull cycle.
One supporter of this theory is Dragonfly Capital’s Haseeb Qureshi. In a recent interview, the investment firm’s managing partner said that if any cryptocurrency is ever going to succeed in $1 trillion, it’s going to be Ethereum.
His reasoning? Institutional investors who must align buying with their Environmental, Social, and Governance (ESG) agenda:
You wish institutional buyers to be willing to purchase this thing in size and Ethereum is de facto the one game on the town when you are an institutional buyer.
Moreover, the expert expressed that it’s becoming increasingly difficult for institutions to justify Bitcoin as an investment.
“I see it lots because we work lots with big institutions […]. It’s explicitly something that gets an increasing number of of a priority for them. They need to take a position in crypto, nevertheless it needs to be compliant with their ESG mandate,” Qureshi said.
2. Ethereum is superior to #Bitcoin within the eyes of institutions, because it’s more ESG friendly.
“In the event you desire a trillion dollar coin, you’re not going to get there off the back of retail.”
“Ethereum is de facto the one game on the town when you want institutional buyers.” pic.twitter.com/f2H2gg224T
— Miles Deutscher (@milesdeutscher) January 18, 2023
One other argument made by proponents of the speculation can also be that Ethereum is predominantly OFAC (US Office of Foreign Assets Control) compliant, which could make it easier for institutions to enter the market.
Alternatively, Bitcoin supporters are prone to counter that the mining industry is one of the vital sustainable industries of all. In its latest report, the Bitcoin Mining Council found that the energy mix in Bitcoin mining is now 58.9% sustainable.
Moreover, estimates suggest that Bitcoin mining can reduce global emissions by as much as 8% by 2030, just by converting the world’s wasted and dangerous methane emissions into emissions which might be 80 times less harmful.
Here’s What Ethereum / Bitcoin Technical Evaluation Says
A have a look at the Ethereum / Bitcoin 4-hour chart shows that ETH currently stays in a downtrend in comparison with BTC. ETH saw a spike above and out of the pennant for the ETH/BTC ratio, followed by a retrace back to support as Bitcoin broke out from $18,000 to $21,000 in a matter of days, as explained by the founding father of LedgArt via Twitter.
In accordance with the analyst, a majority of these fake-out wicks are breaking out to the downside. He argued: “Still expecting this level to interrupt lower over the following several weeks as BTC continues to strengthen, absorbing liquidity from alts just like what happened within the 2019 bear market rally,” and shared the chart below.
Ethereum / Bitcoin, 4-hour chart | Source: Twitter @CryptoKaleo
BTC is currently changing hands at $18,798, while ETH is sitting just above the $1,500 support level at $1,528.
Featured image from Kanchanara / Unsplash, Chart from Twitter/TradingView.com