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btc and eth coins side by side with arrow showing btc price going upwards
October 11, 2023

Bitcoin Hits 15-Month High Against Ethereum

October 11, 2023

Bitcoin (BTC) has once again shown its dominance by hitting a remarkable 15-month high against Ethereum (ETH). 

For crypto enthusiasts and potential investors, this trend underscores Bitcoin’s enduring appeal. 

As the pendulum swings in favor of Bitcoin, many are now considering whether this is a prime time to buy Bitcoin. But why is Bitcoin leaving Ethereum in the Dust?

ETH vs BTC Price Chart Via TradingView
ETH vs BTC Price Chart Via TradingView

The Anticipated Bitcoin Halving Surge

Bitcoin has always been a trendsetter in the crypto world. Its decentralized nature, combined with a finite supply, often makes it the cryptocurrency of choice for many. 

Now, with the upcoming halving event on the horizon, there’s palpable excitement in the BTC community. This event, scheduled for the end of April, promises to reduce the issuance of new BTC by 50%. Historically, halvings have heralded bullish market cycles, lending ever more credence to the argument of Bitcoin’s ongoing ascendancy.

In addition to the halving event, Bitcoin’s underlying technology and its broader acceptance play pivotal roles in its growth. The blockchain, lauded for its transparency and security, has found applications far beyond cryptocurrencies. 

As more industries adopt blockchain-based solutions, Bitcoin, the pioneer of this tech, stands to gain from the increased mainstream acceptance.

graphic of bitcoin being cut in two representing btc halving

Bitcoin ETF: The Coming Wave

The world of traditional finance and the burgeoning domain of cryptocurrencies might soon have a robust bridge. The possibility of a Bitcoin ETF (Exchange-Traded Fund) has been a topic of discussion for years but may soon finally come to fruition

ETFs track the price of an asset (or a group of assets) and can be traded like stocks on an exchange. A Bitcoin ETF, thus, would allow investors to get exposure to Bitcoin without actually holding the asset.

man standing by skyscraper window with ETF art on the window

BlackRock’s application for a spot BTC ETF last June seemed to open the floodgates. Several other financial entities followed suit, indicating a growing institutional interest in crypto assets. This surge of interest isn’t just a fad. It signifies a larger trend of traditional finance merging with decentralized assets. If the U.S. Securities and Exchange Commission (SEC) gives the green light, this could massively drive Bitcoin’s price upward.

Moreover, experts like Eric Balchunas, Senior ETF analyst at Bloomberg, have shown optimism regarding the ETF’s potential approval by the end of the year. An approval would not only bolster Bitcoin’s credibility but also open up avenues for more mainstream investors to enter the crypto market.

Tweet from Eric Balchunas, Senior ETF analyst at Bloomberg, renewing his prediction of a Bitcoin Spot ETF by the end of 2023.
Tweet from Eric Balchunas, Senior ETF analyst at Bloomberg, renewing his prediction of a Bitcoin Spot ETF by the end of 2023.

Ethereum’s Struggle: Inflation After The Merge

On the other side of the coin, Ethereum is undergoing a tumultuous phase. The much-anticipated transition known as The Merge promised to bring about significant changes to Ethereum’s ecosystem, primarily shifting from a Proof of Work (PoW) mechanism to Proof of Stake (PoS). The Merge had the crypto community buzzing with expectations of a deflationary model for Ethereum.

However, the reality post-Merge has been slightly more complicated. For the first time since its inception, Ethereum reported an inflationary month. Over 30,100 ETH, roughly equivalent to $48M, entered the supply, deviating from the deflationary expectations. This has led to concerns among investors, especially those who view Ethereum as a long-term holding.

Despite these challenges, it’s essential to remember that Ethereum is still in its nascent stages, with plenty of growth potential. Ethereum’s core proposition, smart contracts, has revolutionized various sectors, from finance to real estate. As the network evolves and adapts, there’s still a long road of potential ahead.

To Buy Bitcoin or Not?

In the vast ocean of cryptocurrencies, Bitcoin stands out as the proverbial North Star. Its consistency, resilience, and historical performance make it a compelling choice for those venturing into the crypto realm. Diversifying one’s portfolio with Bitcoin offers a hedge against the volatility often associated with altcoins.

Furthermore, Bitcoin’s decentralized nature ensures that it remains free from geopolitical influences, making it a truly global asset. Its transparent ledger system, combined with a robust security mechanism, further augments its position as a preferred investment choice.

The crypto landscape is continually evolving, with trends shifting rapidly. While Ethereum faces its set of challenges, Bitcoin’s current trajectory seems to be on an upward curve. With the impending halving and the potential greenlighting of a Bitcoin ETF, the stars seem aligned for BTC.

However, every investment carries inherent risks. It’s essential to conduct thorough research and consult with financial experts before diving in. But for now, the data seems to suggest a strong case for Bitcoin, reinforcing its moniker as ‘digital gold.’

As always, this article does not constitute financial advice. You should be sure to do your own research and consult a professional financial advisor before making a major investment decision.

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