$XRP

### **Short Report: BTC vs. ETH**

#### **1. Overview**

Bitcoin (BTC) and Ethereum (ETH) are the two largest cryptocurrencies by market capitalization, but they serve different purposes:

- **BTC**: Primarily a store of value ("digital gold"), with a focus on decentralization and security.

- **ETH**: A smart contract platform enabling decentralized applications (DeFi, NFTs, etc.).

#### **2. Key Differences**

| **Metric** | **Bitcoin (BTC)** | **Ethereum (ETH)** |

|------------------|---------------------------|----------------------------|

| **Use Case** | Digital gold, SoV | Smart contracts, DeFi, dApps |

| **Supply** | 21M cap (deflationary) | No hard cap (deflationary post-EIP-1559) |

| **Consensus** | Proof-of-Work (PoW) | Proof-of-Stake (PoS) |

| **Transaction Speed** | ~7 TPS | ~30 TPS (higher with L2s) |

| **Adoption** | Institutional, SoV | Developer, DeFi, NFTs |

#### **3. Short-Term Outlook (Bearish Factors)**

- **BTC**:

- ETF inflows slowing, miner selling pressure post-halving.

- Macro risks (Fed rates, inflation).

- **ETH**:

- Regulatory uncertainty (SEC scrutiny as security).

- Lower ETF demand vs. BTC (if approved).

- Competitors (Solana, etc.) gaining in DeFi/NFTs.

#### **4. Price Action & Levels to Watch**

- **BTC**:

- Support: **$60K** (critical), Resistance: **$65K–$68K**.

- Break below $60K could trigger deeper correction.

- **ETH**:

- Support: **$3,000**, Resistance: **$3,500–$3,800**.

- Weakness if BTC drops; potential underperformance.

#### **5. Conclusion (Short Bias)**

- **BTC**: Better store of value but vulnerable to macro headwinds.

- **ETH**: Higher beta, more downside risk if DeFi activity slows.

- **Trade Idea**: Short ETH/BTC pair if ETH underperforms (target: 0.045 BTC).

**Risk Warning**: Crypto is volatile; monitor macro trends (Fed, regulations).

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