Ethereum Emerges as this Summer’s Crypto Winner Over Bitcoin

Since June 1st, Ethereum’s price performance has been stronger than Bitcoin, and other indicators also support this trend. Why did ETH outperform BTC this summer?

The secret winner of this crypto summer is Ethereum, as a recent report by K33 notes. The calculations were made from June 1st. During this period, Ethereum saw a gain of around 70 percent in its price curve, while the leading cryptocurrency, Bitcoin, had to settle for 9 percent. This development also drove ETH to an annual high of 0.037 in direct comparison to BTC. The reasons for this trend are diverse and worth taking a look:

– ETH has gained significant momentum in markets outside of crypto exchanges. Ethereum ETFs have attracted a good $9 billion since the beginning of June, while Bitcoin ETFs have attracted just under $9 billion. This is the first time such a situation has been observed with the two major crypto ETFs; Bitcoin ETFs have typically seen significantly higher capital inflows than Ethereum ETFs.

– The ETH price curve was also driven by so-called Ethereum companies like Bitmine Immersion (BMNR) . They played a minor role in the spring, holding just 0.2 percent of all ETH in circulation – now they already own a good 2 percent of all circulating Ethereum.

– Analysts at Wintermute had already identified a ” catch-up demand ” for Ethereum among institutional investors in July. Bitcoin was included in relevant portfolios at the latest with Donald Trump’s election victory, while Ethereum took longer.

– Uncertainties in US politics, such as the surprisingly weak labor market and inflation risks, currently appear to be weighing more heavily on Bitcoin than Ethereum. Added to this is the open dispute between President Donald Trump and Federal Reserve Chairman Jerome Powell over possible interest rate cuts. Here, too, Bitcoin is suffering more than Ethereum.

– The 10th anniversary at the end of July may also have had an impact on Ethereum’s momentum. It helped to spread knowledge about Ethereum. Bitcoin no longer needed such tutoring.

Conclusion: Bitcoin and Ethereum – crypto duo or competitors?

In the crypto scene, Bitcoin and Ethereum are often viewed as rivals. However, with a market capitalization roughly four times that of ETH, BTC is in a league of its own. It seems as if institutional investors are gaining ground by considering Bitcoin and Ethereum combined to be the best crypto portfolio.

Currently, ETFs for the two leading cryptocurrencies are showing weaknesses, which experts believe represents risk mitigation for investors. However, Wall Street price forecasts continue to predict rosy times for Bitcoin and Ethereum in the medium and long term. A speech by Fed Chairman Jerome Powell is expected on Friday, which could have a direct impact on the price developments of BTC and ETH – if he comments on the US key interest rate.

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(Featured image by Jonathan Borba via Pexels)

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