Ethereum’s Value Drops, Recovery Hopes High Amidst Planned 2024 Upgrade
Ethereum vs BTC: A Roller Coaster Ride
Ethereum (ETH) has reached its lowest price against Bitcoin (BTC) in the last 20 months. Nevertheless, there is hope for a recovery, particularly due to a planned major upgrade in the first quarter.
ETH’s Value Loss Against BTC
According to data from TradingView, the price of Ethereum against BTC has fallen by 32.68% in the last 365 days. In the last six months, the decline was no less dramatic at 18.80% to 0.048 BTC.
A major reason for this development is the optimism surrounding the Bitcoin ETF. Many market participants believe that a possible approval of the Bitcoin ETFs would be good for the market. This is also reflected in the performance of Bitcoin, which has risen by 170% in 2023.
False Approval Benefits ETH
On January 9, AMBCrypto reported that the US SEC’s account was hacked and the hackers announced the approval of all Spot ETFs. This development led to increased volatility as prices rose and fell sharply within minutes. Amid this turbulence, however, ETH was able to gain. At the time of reporting, the price of ETH was $2,380, after it had risen by 3.37% in the last 24 hours.
Potential Recovery of ETH
Despite the current dominance of BTC, there is a chance that ETH will experience a dominant season in the first quarter of 2024. One reason for this is the planned Ethereum Dencun upgrade, which is expected to be completed between January and February. This upgrade aims to improve the security and scalability of the Ethereum blockchain.
ETH’s Market Capitalization in BTC Terms
Despite the volatility of ETH, many players believe in its potential. At the time of reporting, there were 112.18 million ETH holders, compared to 52.64 million Bitcoin holders.
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It remains to be seen how the situation will develop and whether Ethereum can improve its position against Bitcoin. Regardless of the outcome, the cryptocurrency landscape remains an exciting field that constantly offers new developments and opportunities.
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