Ethereum has recently been showing superior performance compared to Bitcoin.
The increase in Open Interest (OI) on the Chicago Mercantile Exchange along with the fact that individual investors have not yet participated much indicates that this spread trend is likely to be maintained in the short and medium term.
MAIN CONTENT
Ethereum has shown good performance surpassing Bitcoin recently.
The increase in Open Interest on CME is an important indicator of market trends.
Individual investors have not participated strongly, forecasting that the spread will continue to be maintained.
Why has Ethereum been superior to Bitcoin recently?
CryptoQuant analysts state that Ethereum has outperformed Bitcoin based on recent market data, particularly from Open Interest on the Chicago Mercantile Exchange (CME). An increase in OI indicates strong demand from large institutions and professional investment funds.
This is a sign of strong interest from institutional investors in Ethereum, creating positive pressure on price and liquidity, helping Ethereum outperform Bitcoin. This momentum is reinforced by both technical and fundamental factors of Ethereum in the current phase.
How does Open Interest on CME influence the cryptocurrency market?
Open Interest reflects the total number of futures or options contracts that are open and have not been closed or settled, reflecting the strength of institutional cash flow in the market. The increase in OI on CME indicates that professional investors are intensifying their bets on Ethereum's price trend.
When OI increases without strong participation from individual investors, price trends can remain stable and sustainable, less volatile due to crowd psychology. This helps the market become more transparent and provide clearer direction for professional investors.
What is the impact of individual investors not participating widely?
Individual investors often create significant volatility in the market due to buying and selling decisions based on emotions or incomplete information. Their limited participation during Ethereum's outperformance suggests that the market is still in a phase controlled by industry experts.
This opportunity helps the price of Ethereum remain more stable without being affected by psychological shocks from retail investors. This also indicates that the market can maintain a positive trend in the short and medium term before receiving significant capital inflows from individual investors.
What factors support Ethereum in maintaining positive performance?
Alongside the increase in OI on CME, Ethereum also benefits from many factors such as new network updates, and the strong development of DeFi and NFT applications. The diversification in applications helps Ethereum maintain its leading position in smart contract platforms.
Supply and the momentum of technological development are also major positives, contributing to building trust from institutional investors, creating a solid foundation for Ethereum's performance to surpass Bitcoin.
What are the next prospects for the cryptocurrency market in the short and medium term?
Driven by the growth of Ethereum and the incomplete participation of individual investors, the cryptocurrency market has the prospect of maintaining a stable upward trend in the coming months. However, macro factors and global regulatory policies still need to be closely monitored to identify potential risks.
Currently, institutions are proactively managing risks and taking advantage of the trend of new technological development, which is expected to continue to drive positive trends in the cryptocurrency market in the near future.
Frequently Asked Questions
What is Open Interest (OI) and how important is it in cryptocurrency trading?
OI is the total number of open derivative contracts, reflecting the institutional cash flow in the market. An increase in OI usually signals a clear price trend and active participation from professional investors.
Why has Ethereum outperformed Bitcoin recently?
Ethereum is receiving greater interest from investment institutions, as evidenced by increased OI on CME, along with technological development and applications in the DeFi and NFT sectors.
What is the impact of weak individual investors in the market?
When individual investors have not participated en masse, the market is less volatile, helping to make price trends more sustainable and predictable by minimizing the impact of emotional decisions.
What factors support the upward trend of Ethereum?
Technological development, network updates, along with the diversity of DeFi and NFT applications are the main factors helping Ethereum maintain and increase performance.
What are the prospects for the cryptocurrency market in the coming months?
The upward trend of Ethereum and the risk control from institutions lay the foundation for the cryptocurrency market to continue positively developing in the short and medium term.
Source: https://tintucbitcoin.com/cryptoquant-ethereum-vuot-bitcoin-sap-toi/
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