The analysis firm, Glassnode, points out that there is a “speculative divergence” between the bitcoin (BTC) market and ether (ETH), the Ethereum cryptocurrency. In its most recent report, it breaks down that There has been an increase in speculative activity in the bitcoin market since last year. Specifically, look at this in accumulation by short-term (STH) investors. This accumulation intensified two months ago, reaching almost all-time highs, which propelled BTC to a new price record (ATH). This can be seen in the following graph that shows the realized capitalization of the coins stored between 1 day and 6 months, a metric that adds the value they had the last time they were moved.
Realized capitalization of BTC supply moved in the short term. Source: Glassnode. “However, this trend has not been reflected in ETH, which has not yet seen the price surpass the all-time high of 2021,” Glassnode contrasts. While short-term bitcoin investors' realized capitalization is almost on par with the peak of the last bull run, that of ETH has barely taken off from the minimums. Glassnode emphasizes that this, which can be seen below, “suggests a markedly lackluster influx of new capital.”
Realized capitalization of ETH supply moved in the short term. Source: Glassnode. Glassnode specifies that the lack of new capital inflows into cryptocurrency of Ethereum explains the poor performance of its price in relation to BTC. Furthermore, he mentions that this scenario indicates a general trend of capital rotation from bitcoin to cryptocurrencies weaker than other cycles. In other words, he summarizes that ETH's poor performance in this cycle relative to BTC is reflected in a lag of speculative interest of investors from short-term holders.
Bitcoin ETFs Driving This Divergence, Glassnode Says
For the analytics firm, this is likely due in part to the attention and access that spot bitcoin exchange-traded funds (ETFs) have garnered in the United States. Add that The market is still waiting if ether ETFs are authorized in the American powerhouse at the end of May, when your first application expires as reported by BitcoinDynamic. Meanwhile, he highlights that “both assets still have a relatively low realized capitalization associated with long-term holders, suggesting that the market is likely in the early stages of a macro bullish trend.” This report is presented while bitcoin is trading around USD 62,000, which is 15% from its all-time high recorded two months ago, and ether at USD 3,000, 38% below the record reached in 2021.