Key highlights:
- Bitcoin is trading sideways, as the market is currently in a period of consolidation
- Ethereum has approached new all-time highs in terms of price
- According to Google Trends, the »Ethereum« search term recently recorded a new all-time high
Bitcoin consolidates, but there’s still reasons to be optimistic
Bulls and bears are still duking it out in the Bitcoin market, as the world’s largest cryptocurrency seems to be in a period of consolidation. However, Ethereum has been performing much better recently, outdoing Bitcoin on both the 7-day and 30-day time frames.
An analyst from JPMorgan recently stated that if BTC fails to stay above $40,000, some investors could pack their bags and move their capital to other assets. The opinion seems to be somewhat split among analysts, as others present a more bullish outlook.
Yves Renno, the head of trading at the popular cryptocurrency platform Wirex said that the consolidation in Bitcoin could be a positive sign. Renno stated that the recent correction is an opportunity for large investors to buy BTC, highlighting the increasing number of Bitcoin whales and a relatively low miner supply as some of the key reasons why Bitcoin is still in a positive trend. Renno predicts more volatility in the upcoming months, but in the end, he thinks Bitcoin is bullish in the mid-term.
Ethereum has been displaying strong price action
Ethereum’s strong performance has been helped due to its fundamentals, including the ongoing transition to Ethereum 2.0 and the upcoming Ethereum futures contracts that will be launching on the CME in February. Ethereum is also the foundation for the DeFi ecosystem, which is one of the most innovative areas in crypto today.
Many cryptocurrencies are still far from the all-time highs that were reached in the previous bull-run of 2017, but Ethereum is an exception here. People are more interested in Ethereum than ever right now, as evidenced by Google Trends data for the »Ethereum« seartch term.
As the biggest altcoin on the market, Ethereum’s strong performance could be a signal that a new »alt season« is around the corner. In the cryptocurrency markets an »alt season« is a period in which smaller cryptocurrencies display massive gains, outperforming Bitcoin by a significant margin.
Polkadot is the most serious competitor to Ethereum at the moment, and its performance has been excellent as of late – the coin even flipped XRP in terms of market cap.
