Economist Alex Krüger warns that Bitcoin's upside is “clearly limited” and says it's time for Ethereum to take over
Widely followed economist Alex Krüger believes investor interest may soon shift from Bitcoin (BTC) to Ethereum (ETH).
The analyst tells his 162,000 followers on social media platform X that he believes Bitcoin has peaked and Ethereum will start outperforming Bitcoin (ETH/BTC).
He says Tuesday's hoax that the U.S. Securities and Exchange Commission had approved a spot exchange-traded fund (ETF) appeared to foreshadow how the crypto market would react to the approval. The approval came on Wednesday.
“Fake ETF news showed that BTC upside potential is clearly limited until we see actual ETF inflows. Time for ETH to take power.”
At the time of writing, Bitcoin is trading at $45,783, up slightly in the last 24 hours.
The analyst believes that the ETH/BTC trading pair has bottomed out in the market after recovering from the key level of 0.0479. He also suggests that the approval of a spot market Ethereum ETF could come next, which could act as a catalyst for an ETH rally.
“Most of the components for an ETH/BTC floor are here:
-Narrative shift: from BTC ETF to ETH ETF
– Upcoming events: EigenLayer Airdrop
– Chart: 50% correction + fakeout of 2022 lows Sentiment: extreme pessimism.”
Source: Alex Krüger/X
ETH/BTC is trading for 0.054 BTC ($2,514) at the time of writing.
The analyst says the longing for Bitcoin has proven to be a successful strategy ahead of the BTC ETF's approval on the spot market.
“You will never have another chance to make money as easily as with Bitcoin ETF trading. All you had to do was walk for a long time and ignore the noise.”
He points out that the crypto market plunge earlier this week blunted the impact of a possible sell-the-news event on a preliminary approval of a Bitcoin ETF.
However, he notes that open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) has reached high levels, which could indicate that price volatility is still possible.
“The likelihood of a BTC sell-the-news on ETF approval OR launch is much lower now after Monday's heavy leverage. The only thing that remains concerning is the high level of open interest from the CME.”
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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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