- According to Markus Thielen, founder of 10x Research, Ethereum’s weak performance in this cycle is also hindering Bitcoin and other cryptocurrencies.
- Bitcoin, which hit rock bottom in November 2022 after FTX’s bankruptcy, has been showing a tremendous performance since 2023.
- Thielen argues that Ethereum’s weak fundamentals are affecting Bitcoin and other altcoins due to the high correlation between BTC and ETH.
Markus Thielen, founder of 10x Research, discusses the impact of Ethereum’s weak performance on Bitcoin and other cryptocurrencies, and predicts potential future trends.
Ethereum’s Weak Performance
While Bitcoin has recorded an increase of approximately 270% since January 2023, Ethereum (ETH), the largest altcoin, is showing a weaker performance with an increase of only 160% in the same period. Thielen attributes this weak performance to Ethereum’s weak fundamentals, which he believes are hindering the flow of fiat money into the crypto ecosystem and thus becoming a barrier for Bitcoin.
Impact on Bitcoin and Other Altcoins
Thielen argues that Ethereum’s weak fundamentals are affecting Bitcoin and other altcoins due to the high correlation between BTC and ETH. He points out that the lack of money inflow attributable to ETH is one of the reasons why Ethereum’s price is falling more sharply compared to Bitcoin. He also notes that transfers from FTX are affecting Ethereum’s decline.
What Lies Ahead for Ethereum?
Market analysts, including Thielen, expect a price drop in Ethereum due to its weak performance against Bitcoin. They believe that if Ethereum fails to hold the critical $3,100 level, the decline could continue and Ethereum could fall to as low as $2,900. However, if Ethereum manages to stay above $3,100, they believe the downward trend could end. At the time of writing, Ethereum continues to trade at $3,070.
Conclusion
In conclusion, Ethereum’s weak performance in this cycle is affecting not only its own price but also that of Bitcoin and other altcoins. With a high correlation between BTC and ETH, Ethereum’s weak fundamentals are hindering the flow of fiat money into the crypto ecosystem, thus becoming a barrier for Bitcoin. The future of Ethereum depends on whether it can hold the critical $3,100 level, with analysts predicting a potential fall to as low as $2,900 if it fails to do so.
