As Bitcoin has broken higher over the past two days, the leading cryptocurrency has finally begun to gain ground against Ethereum.
For the past month, BTC has been largely underperforming ETH due to a confluence of fundamental and technical factors. To contextualize this, here are some numbers: according to CryptoSlate data, Bitcoin has gained 33 percent in the past month while Ethereum has gained around 88 percent.
Although the performance of the latter cryptocurrency is inherently unsustainable, a Wall Street veteran expects for ETH’s outperformance of BTC to continue.
Ethereum will continue to outperform Bitcoin
Real Vision chief executive Raoul Pal says that while BTC is his main trade at the moment, he is liking Ethereum at the moment and sees it potentially outperforming Bitcoin even after an already-stellar month.
This comes after Pal, who formerly headed the Goldman Sachs’ hedge fund sales division, predicted the Ethereum rally seen over the recent weeks.
#Bitcoin is currently the superior trade and should remain so for a while. I like both but Im personally adding to BTC and not to gold and have a much larger weighting. I also like Ethereum, which could continue to outperform $BTC for a while still.
— Raoul Pal (@RaoulGMI) August 17, 2020
Pal explained this sentiment further in a video published to his financial news/analysis media outlet Real Vision on Aug. 14.
The investor made a comment similar to the one he made in the tweet, remarking that while Bitcoin is one of the most high-potential macro trades in existence, ETH could soon steal the show in the near term due to a confluence of technicals and fundamentals.
A trend expected to continue in the long run
Even on a longer-term time frame, there are some that expect Ethereum to continue to outperform.
Placeholder Capital’s Chris Burniske earlier this month went as far as to say that Ethereum and Bitcoin are likely to “race” towards the milestone market capitalization of $1 trillion. For context, ETH has a market capitalization approximately 20 percent that of BTC, meaning it needs to rally five times as fast to “race” Bitcoin.
Ready to watch $BTC & $ETH race each other to a trillion in value? https://t.co/BAffYQMPSF
— Chris Burniske (@cburniske) August 9, 2020
Burniske’s optimism is related to how he expects a mainstream audience to invest the “new kid on the block,” Ethereum. He thinks that there will be a frenzy for the asset as mainstream investors, who focused their interest and capital on Bitcoin in the 2016-2017 run, shift to the fresh-faced ETH:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs.”
The noted crypto analyst added in separate comments that he thinks Ethereum’s decentralized finance space is only early on in its growth cycle, not near the end as some have said.
The post Wall Street veteran still thinks Ethereum will continue to outperform Bitcoin appeared first on CryptoSlate.
By: Nick Chong
Title: Wall Street veteran still thinks Ethereum will continue to outperform Bitcoin
Sourced From: cryptoslate.com/wall-street-veteran-still-thinks-ethereum-will-continue-to-outperform-bitcoin/
Published Date: Tue, 18 Aug 2020 11:00:31 +0000