ETH Pump Incoming?
Ethereum comeback? ETH/BTC closed below lows set during the 3AC collapse on Wednesday before putting in a decisive 6.7% relief rally yesterday. Today, the ratio finds itself yet again in decline, down 1.3% on the day. How long can an ETH revenge pump last?
Bitcoin dominance has fallen over 2% over the past two days, indicating that alts are experiencing momentary strength, but they’ve been bleeding out since the collapse of FTX, and dominance continues to establish higher highs.
at least ETHBTC is green for the day
— RunnerXBT (@RunnerXBT) December 7, 2023
for how long tho pic.twitter.com/bjmeYboARc
Bitcoin’s persistence in commanding inflows above all other assets is thanks to the presence of two strong, fundamentally linked narratives. The approval deadline for spot BTC ETFs is just over a month away, and the halving is scheduled for mid-April. Both events are anticipated to be extremely bullish catalysts for BTC price.
Undoubtedly, it will be extremely difficult for Ether—or any alts for that matter—to experience persistent strength against Bitcoin prior to the approval of a spot BTC ETF, as market participants are seeking exposure to the opportunity with the most immediate upside.
Post approval, the path toward an alt szn remains murky. If spot BTC ETFs truly unlock meaningful external flows, Bitcoin will continue to outperform. Further, the reduction in BTC emissions from the halving has historically been an impetus for strength!