decrypt.co
Bitcoin smashed its $120,000 target earlier this week, filling Ethereum holders with a familiar envy as $BTC hit multiple new all-time high marks. But on Tuesday, the two largest cryptocurrencies by market value reversed paths, with $ETH gaining and $BTC sinking.
Ethereum was recently trading at $3,128, up 4% over the past 24 hours (and 20% on the week), while Bitcoin was changing hands 1.9% lower on the day—at one point dropping below $117,000 for the first time in five days, according to data provider CoinGecko. For $ETH, the upturn continued recent momentum that carried the token to its highest level in five months.
“After two years of underperformance, $ETH is gaining traction again,” Greg Magadini, director of derivatives at Amberdata, told Decrypt.
Bitcoin has risen nearly 300% over the past two years, while Ethereum has jumped a more modest 60% over the same period—and is down almost 8% year-to-date.
The reversal occurred as several publicly traded companies added Ethereum to their balance sheets this week and a rash of $ETH-based investment products appeared poised to hit the market. Magadini also noted that Ethereum shrugged off a blow to the digital asset industry’s aggressive policy agenda on Tuesday when the U.S. House of Representatives failed to pass a measure that would enable lawmakers to vote on three major crypto bills.
“Today’s news is hitting $BTC harder than $ETH due to crypto-specific trades holding up $ETH,” he said.
Ethereum investors have also grown increasingly optimistic on the likelihood that the U.S. Securities and Exchange Commission will approve Ethereum exchange-traded funds with staking, after the regulator said in a statement in May that it would not classify staking activities as securities transactions.
More recently, online gambling marketing firm Sharplink Gaming purchased $225 million worth of the token for its balance sheet, bringing its holdings to roughly 280,000 $ETH. And earlier this week, Bitcoin miner BitMine acquired more Ethereum, putting the value of its total holdings of the token above the $500 million mark.
Magadini noted that notional open interest in Ethereum futures recently exceeded 12-month highs, or levels last seen when the token was trading at around $4,000 last December, the analyst noted.
“This is a big deal in terms of flows and market participation in the asset,” Magadini said.