Analysts: Ethereum Could Outperform Bitcoin in January 2025
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Ethereum (ETH) may outpace Bitcoin (BTC) in January 2025, according to analysts predicting a potential altcoin market surge. MN Capital founder Michael van de Poppe anticipates that ETH’s relative strength against BTC, measured by the ETH/BTC ratio, could break through 0.04—a level not seen since December 2024. This development is fueling expectations of a bullish movement for Ethereum, possibly catalyzing an “altcoin run.” Historical Performance Signals Positive Momentum Ethereum (ETH) price chart. Source: Ethereum Liquid Index (ELX) via Brave New Coin Ethereum’s track record in Q1 highlights its potential for significant gains. According to Coinglass data, ETH has averaged a 92% increase in Q1 since 2017, with January alone delivering an average of 23% growth. This historical precedent provides a strong foundation for optimism regarding early 2025 price activity. Bitcoin (BTC) price chart. Source: Bitcoin Liquid Index (BLX) via Brave New Coin Additionally, Ethereum’s current market behavior suggests upward potential. As of late December, the ETH/BTC ratio climbed 3.26% over 30 days, while ETH hovered around $3,472. Bitcoin, on the other hand, traded slightly below its record-breaking six-figure milestone at $98,805, as reported by CoinMarketCap. Institutional Adoption and ETF Trends Spot Ether exchange-traded funds (ETFs) are attracting growing institutional interest, further bolstering Ethereum’s appeal. Nate Geraci, president of The ETF Store, commented that net inflows into ETH ETFs are on pace with gold ETFs, signaling a shift toward Ethereum among institutional investors. He anticipates accelerated inflows as 2025 progresses. This trend holds particular importance given the dynamic nature of the cryptocurrency market. Spot ETFs provide investors with a simplified avenue to gain exposure to assets like ETH, promoting wider adoption and increased market liquidity. Analysts suggest that the growing traction of ETH ETFs could eventually outpace that of Bitcoin ETFs, driven by Ethereum’s diverse applications and versatile ecosystem. Catalysts for…
Filed under: News - @ December 26, 2024 11:23 am