Ethereum’s Potential to Surpass Bitcoin by 2025: A Thorough Examination

Analyzing the 2024 Crypto Race: BTC and ETH's Performance and Future Projections for 2025

Ethereum's Potential to Surpass Bitcoin by 2025: A Thorough Examination

Key Points

Bitcoin [BTC] and Ethereum [ETH] have been displaying strong performance recently, with Bitcoin reaching a historic high. Both cryptocurrencies are under constant analysis as they aim for new targets of $100k and $4k respectively.

Bitcoin’s Dominance

Bitcoin achieved an all-time high (ATH) in November 2024, whereas Ethereum’s ATH was recorded during the crypto bull market of November 2021. Despite expectations that the ETH 2.0 upgrade would shift the balance, this did not occur. However, Ethereum is currently on track to reach its ATH in the coming months.

Bitcoin investors have seen more profit since it reached an ATH a few days ago. Data from IntoTheBlock indicates that 98% of Bitcoin addresses were profitable, compared to 88% for Ethereum. Bitcoin also had a clear advantage in terms of dominance, remaining well above Ethereum despite a decline.

Metrics and Predictions

Both cryptocurrencies face challenges. For instance, the NVT ratio for both Bitcoin and Ethereum has increased, suggesting they may be overvalued and hinting at potential pullbacks. However, the exchange balance metric favored Bitcoin as its balance on exchanges decreased while Ethereum’s increased, indicating a potential rise in selling pressure for Ethereum and a price correction.

As Ethereum’s selling pressure increases, it may drop to its support near $3.38 in the event of a major correction. Conversely, Bitcoin’s buying pressure could push the coin above its $96k resistance, indicating a potential rally towards $100k and a new ATH.

Despite these challenges, Ethereum investors should remain hopeful as there is speculation of a fresh altcoin season which could see Ethereum outperform Bitcoin in 2025.

Bitcoin ETFs vs Ethereum ETFs

The performance of Bitcoin and Ethereum’s respective ETFs has been remarkable, with inflows reaching record highs during their substantial price hikes. Specifically, Bitcoin ETF inflow surpassed $1.3 billion on November 7th, while Ethereum ETF inflow peaked at $295 million on November 11th.

Both cryptocurrencies boast significant market capitalizations, but which will outperform the other in terms of market value or profitability remains to be seen.

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