Ethereum vs Bitcoin: Why Now Might Be the Time for Altcoins

Ethereum vs Bitcoin- Should You Be Watching Altcoins Now?

Ethereum vs Bitcoin– Ethereum’s value against Bitcoin has reached its lowest point since mid-2020, sparking speculation among traders about the possibility of shifting investments to higher-performing altcoins. According to economist and crypto trader Alex Kruger, it might be a good time to consider reallocating funds.

Kruger suggested in a March 12 X post, “If still stuck on ETH, it is likely a good time to dump it to buy a higher beta altcoin.” He added that while a market downturn could cause losses in both assets, an upward movement might significantly favor altcoins over Bitcoin. The ETH/BTC ratio, which measures Ethereum’s strength against Bitcoin, has dipped to 0.02281, marking its lowest point in nearly five years, based on TradingView data.

Currently, Bitcoin is trading at $83,667, staying below the $100,000 mark since early February. Meanwhile, Ethereum (ETH) is hovering around $1,907, having stayed below $2,000 since March 10. These price levels are raising concerns among investors looking for growth opportunities.

Crypto Sentiment and Market Trends

The Crypto Fear & Greed Index has moved to a “Fear” score of 45, up 11 points from the previous day, indicating an anxious market sentiment. Some traders view the declining ETH/BTC ratio as a potential signal for the start of an altcoin season. As Benjamin Cowen noted, altcoin season may only begin when the ETH/BTC ratio bottoms out and starts trending upwards.

However, other indicators suggest Bitcoin might continue to dominate. The Altcoin Season Index by CoinMarketCap has registered a score of 13/100, signaling that Bitcoin could hold its market dominance in the short term.

Bitcoin’s dominance currently stands at 62.15%, showing little signs of altcoins surpassing it in the near future. Even during Ethereum’s all-time high in November 2021, when ETH reached $4,800, Bitcoin’s dominance was approximately 42%, further reinforcing the current dominance trend.

While Ethereum’s market performance shows signs of slowing down against Bitcoin, traders are keeping a close eye on these shifts in the ETH/BTC ratio, as they may influence broader market movements in the coming weeks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.