Investors Buying Bitcoin (BTC) Over Ethereum (ETH): Key Data Reveals
August 23 2024 - 8:00AM
NEWSBTC
The market is facing severe volatility as the two main assets,
Bitcoin (BTC) and Ethereum (ETH), are in crucial accumulation
phases. However, Bitcoin has performed better over the past ten
days, standing out amid the fluctuations. Related Reading:
Where Is Bitcoin And Ethereum Headed? Analyst Reveals Key Levels to
Watch The ETH/BTC chart reveals this shift. At the time of writing,
Ethereum’s price in Bitcoin terms was 0.043, its lowest since April
2021. This highlights Bitcoin’s dominance in the current market
environment. As prices move and investors seek an edge, critical
data reveals a clear preference for Bitcoin over Ethereum in the
past months. While the market may appear calm, history shows things
can turn on a dime. Therefore, examining on-chain data and
fundamentals is vital to anticipate potential shifts. ETF Flows
Showing Bitcoin Dominance Traditional investors are showing an
increasing preference for Bitcoin over Ethereum, as evidenced by
crucial data from Farside Investors, a London-based investment
management firm. According to their reports, Spot Bitcoin ETFs have
experienced five consecutive inflows, while Ethereum ETFs have seen
five straight days of outflows. While some market participants
believe that the outflows from Ethereum ETFs are due to selling
pressure from Grayscale, analyst and investor Lark Davis has
countered this argument. He points out that “about 30% of ETH is
already out of Grayscale’s $ETHE ETF,” implying that the outflows
are driven by broader market sentiment rather than Grayscale’s
influence. BLACKROCK NOW HAS MORE CRYPTO THAN GRAYSCALE Blackrock
has now overtaken Grayscale in total on-chain holdings. This makes
Blackrock the largest ETF-related entity on Arkham. Blackrock:
$22,143,715,559 Grayscale: $21,996,062,828
pic.twitter.com/YrPZdrMObk — Arkham (@ArkhamIntel) August 22,
2024 This trend underscores Bitcoin’s undeniable dominance in
the market, as traditional investors continue to favor BTC over ETH
during times of uncertainty and volatility. BTC Technical Levels To
Watch Bitcoin’s price is currently at $61,280 at the time of
writing. It has been in a consolidation phase since August 8,
oscillating between the local resistance at $62,729 and the local
support at $56,138 in the 4-hour timeframe. This period of sideways
trading has kept the market in suspense as investors watch closely
for the next significant move. For a bullish confirmation, BTC
needs to break above the $63,000 level and close above the daily
200 Moving Average (MA), a crucial indicator that typically acts as
support during bull markets and as resistance in periods of deep
corrections. The daily 200 MA has been a critical level for
determining the overall trend, and reclaiming it would signal a
potential continuation of the bull market. Related Reading: Will
Bitcoin Perform Better In September Compared To August? Here’s What
The Data Says While Bitcoin’s current dominance in the market is
evident, it’s important to note that this dominance may not last
forever. The market remains dynamic, and shifts in sentiment or
broader market conditions could alter the landscape at any time.
Featured image created with Dall-E, chart from Tradingview.com
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