$BTC It is an interesting divergence now: Bitcoin (BTC) is rising while Ethereum (ETH) is struggling, and there are some key reasons behind this:
Why BTC is rising:
Institutional Inflows:
Previously approved Bitcoin ETFs have brought billions in institutional money.
Big names like BlackRock and Fidelity have increased their exposure.
"Digital Gold" Narrative:
With rising global tensions (such as US-China), investors see BTC as a hedge, similar to gold.
BTC is seen as a safer bet than altcoins.
Supply Shock:
The recent halving has reduced block rewards, tightening supply.
Scarcity drives up the price, especially if demand remains.
Shift in Dominance:
BTC dominance is above 50% now, meaning more capital is concentrated in Bitcoin compared to altcoins.
Traders are rotating from ETH and others to BTC for a safer position.
Why ETH is falling:
Drop in Market Share: ETH dominance has fallen as investors favor faster and cheaper chains like Solana.
Capital Outflows: Billions have left the Ethereum ecosystem since February.
Technical Weakness: ETH has not maintained key support levels and is trading in a bearish zone.
No Spot ETF yet: Ethereum still lacks the same level of institutional access through a spot ETF.
$BTC
Why BTC is rising:
Institutional Inflows:
Previously approved Bitcoin ETFs have brought billions in institutional money.
Big names like BlackRock and Fidelity have increased their exposure.
"Digital Gold" Narrative:
With rising global tensions (such as US-China), investors see BTC as a hedge, similar to gold.
BTC is seen as a safer bet than altcoins.
Supply Shock:
The recent halving has reduced block rewards, tightening supply.
Scarcity drives up the price, especially if demand remains.
Shift in Dominance:
BTC dominance is above 50% now, meaning more capital is concentrated in Bitcoin compared to altcoins.
Traders are rotating from ETH and others to BTC for a safer position.
Why ETH is falling:
Drop in Market Share: ETH dominance has fallen as investors favor faster and cheaper chains like Solana.
Capital Outflows: Billions have left the Ethereum ecosystem since February.
Technical Weakness: ETH has not maintained key support levels and is trading in a bearish zone.
No Spot ETF yet: Ethereum still lacks the same level of institutional access through a spot ETF.
$BTC
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ETH
2,581.5
+0.82%