The claim of superiority between the leading altcoin Ethereum and the leading crypto Bitcoin is one of the indispensable issues of the crypto market. As Ethereum Merge approaches, this issue continues to be on the agenda. Macroeconomist Alex Kruger says that based on data, Bitcoin became a macro asset a long time ago. However, he claims that the leading altcoin will make more profit than Bitcoin.
“Leading altcoin promises more earnings than leading crypto”
As you follow on Kriptokoin.com, the US CPI data, which the crypto market is eagerly waiting for, has been announced today. US inflation came in at 8.5%, below the expectations of 8.7%. The market cheered as this signaled a softening in the Federal Reserve’s aggressive tone. Bitcoin rallied above $24,000, while Ethereum rose over 8% on a daily basis to over $1,800. It does not go unnoticed that the upcoming Ethereum Merge gives ETH a plus advantage in market rallies.
In the midst of these developments, Alex Kruger shared a chart that visualizes the movement of the Nasdaq index against ETH/BTC. The economist tried to explain his hypothesis on this graph. The two entities are moving together, as Kruger’s chart shows.
BTC is now a macro asset, a liquidity proxy. ETH is high beta BTC (i.e. it moves in line w/ BTC, but more, in both directions). A great way to visualize this is plotting Nasdaq vs ETHBTC, you'll notice how these two have been moving hand in hand. Macro > Equities > BTC > ETHBTC pic.twitter.com/SZYlwdxsXS
— Alex Krüger (@krugermacro) August 10, 2022
Alex Kruger goes on to explain what that means. According to Kruger, the leading altcoin is a high beta of BTC. This means that even though the asset makes the same move in the market, it has more volatility. Therefore, according to the economist, it is more profitable to buy ETH instead of BTC during bull runs.
High volatility makes it more likely for investors to run into more risk, especially when the market enters a correction. But despite more volatility in the shorter term, it shows that both Ethereum and Bitcoin have lost about 65% since November.
However, a bullish comparison changes the color of the business. For this, we look at the performance of two cryptocurrencies since mid-July. While the leading altcoin has gained more than 60% in the past few weeks, the performance of the leading crypto has remained at 25%. Therefore, the ETH/BTC pair has increased by 145% over the past few weeks. This means that Ethereum’s performance is well above Bitcoin.
Traders bet between $2.2 and $5,000 for Ethereum
The most talked about topic in the crypto market lately has undoubtedly been the Ethereum Merge scheduled for September 19. In addition to the discussions of whether it will be successful or unsuccessful, it is more curious how it will affect the Ethereum price. Will this development help Ethereum surpass the ATH level where it has come to the limit and bounced back? According to analytics firm Glassnode, Ethereum derivatives traders are betting on ETH prices between $2,200 and $5,000 ahead of the Merge.
https://twitter.com/glassnode/status/1556655855717826560
Meanwhile, Glassnode notes that the $6.6 billion short position of Ethereum options has surpassed Bitcoin for the first time, which is $4.8 billion. According to the statement, this is due to the upcoming Ethereum Merge update. ETH options open interest shows that it is on the verge of ATH level. The leading crypto Bitcoin open interest is only 35% of ATH. This is well below the peak compared to Ethereum.
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