Ethereum could outperform Bitcoin in the longer term despite BTC halving

Source Fxstreet
  • MicroStrategy CEO Michael Saylor influences the crypto community in Bitcoin halving hype.
  • Bitcoin halving hits peak popularity in Google Trends data.
  • Ethereum has the potential to produce higher returns than Bitcoin regardless of halving, says Greg Magadini.

Bitcoin (BTC) halving is headlining almost every discussion in the crypto market on Wednesday. While many predict the largest digital asset to enter another record-breaking bull run, an industry insider sees Ethereum (ETH) as the main deal regardless of the halving narrative.

Read more: Bitcoin halving is a few days away. Here's what key crypto community members are saying

Bitcoin halving narrative heats up

The Bitcoin halving is less than nine days away, and crypto community members are prepping for a potential bull, considering a similar price increase from previous halvings. Michael Saylor, CEO of MicroStrategy, and many other crypto community members have taken to X to share their bullish sentiments as the halving approaches.

As the hype continues to build up, Google Trends data from the last thirty days shows searches for the keyword "Bitcoin halving" reached peak popularity on Monday and is now at 94 points. The Netherlands leads as the most interested country in Bitcoin halving, followed by Switzerland and Austria.

Also read: Crypto market begins recovery as Runes gain attention ahead of Bitcoin halving

Ethereum could outperform Bitcoin

However, despite Bitcoin's rising popularity as the fourth halving approaches, some believe Ethereum has a better prospect of yielding returns.

Greg Magadini, director of derivatives trading at Amberdata, said in a recent article on CoinDesk that the halving narrative is already priced into short-term Bitcoin options. He analyzed that while Ethereum may be lagging recently, it may be poised for tremendous growth in the future. He painted a picture of his thesis comparing Bitcoin derivatives to Ethereum.

One of the key points he noted is that traders are sure of the halving and aren't likely to be surprised by it, unlike a potential spot for Ethereum ETF approval plus adoption that's unknown. He shared how, on April 26, "Bitcoin options on the call wing are priced at a substantial premium to the Ethereum call wing, while the Ethereum put wing is priced at a premium to the BTC put wing."

Read more: Bitcoin halving is less than two weeks away, traders likely to buy the rumor sell the news

As a result, the halving is boosting confidence among BTC traders, while the low odds of an ETH approval plus the SEC's investigation are causing pessimism in ETH. The increasing CME open interest rate of Bitcoin, which exceeds that of Ethereum's stagnant open interest rate, reveals that the US market has yet to start building significant positions in ETH as in BTC. Hence, if a spot ETF is approved later on, "buyers haven't crowded Ethereum yet," Greg stated.

Ethereum's decreasing supply, reduced fees following the Dencun upgrade, and facilitation of real-world assets in L2s and L3s, among other factors, show rotating into Ethereum will prove a good strategy rather than "selling the news," Greg further mentioned.

Glassnode and CoinDesk analysts have shared similar notions that the upcoming fourth Bitcoin halving may have already been priced in.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
Jan 04, Thu
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Ethereum ETFs Debut: BlackRock Reigns With $260M Inflows, Grayscale BleedsNine spot Ethereum ETFs commenced trading on the US stock market on Tuesday, marking a pivotal moment for the crypto industry following the Securities and Exchange Commission’s (SEC) green light on Monday.
Author  NewsBTC
Jul 25, Thu
Nine spot Ethereum ETFs commenced trading on the US stock market on Tuesday, marking a pivotal moment for the crypto industry following the Securities and Exchange Commission’s (SEC) green light on Monday.
placeholder
Sooner Fed rate cuts may not save economy from recessionInvesting.com -- Sooner Federal Reserve rate cuts may not be enough to stop the central bank from falling behind the curve, throwing the economy and the current stock bull market into a wreck. The ris
Author  Investing.com
Yesterday 01: 13
Investing.com -- Sooner Federal Reserve rate cuts may not be enough to stop the central bank from falling behind the curve, throwing the economy and the current stock bull market into a wreck. The ris
placeholder
Ethereum Whales Rapidly Accumulate ETH Amid Price DeclineEthereum whales have been busy in the market, as on-chain data shows that these investors have been heavily accumulating the second-largest crypto token by market cap.
Author  NewsBTC
Yesterday 01: 17
Ethereum whales have been busy in the market, as on-chain data shows that these investors have been heavily accumulating the second-largest crypto token by market cap.
goTop
quote