- ETH more sensitive to US elections than BTC, says Bitwise CIO
- Altcoin Has Been Underperforming BTC Since 2022; Will The Trend Change?
According to Bitwise CIO Matt Hougan, Ethereum (ETH) is more exposed to the outcome of the US election than Bitcoin (BTC).
The leader noted that ETH has doubled BTC’s losses since Kamala Harris replaced Biden as the Democratic presidential nominee on July 21. said,
“Since Harris replaced Biden. BTC: -8.68%, ETH: -26.19%. Ethereum is more exposed to the election outcome than Bitcoin, in my opinion.”
Since Harris replaced Biden, ETH has fallen from $3,300 to below $2,500. In contrast, BTC has fallen from over $68,000 to below $60,000 over the same period.
As such, ETH’s perceived high sensitivity to changes could suggest that the outcome of the November US election could have a greater impact on the altcoin than on BTC.
ETH is “still great”
Additionally, between July and August, ETH lost a significant portion of its market dominance as liquidity shifted to other competing assets like BTC and Solana (SOL).
According to a market commentator Marty’s PartyThis does not bode well for the largest altcoin.
Source: X
An assessment of the ETHBTC ratio, which tracks the price performance of ETH against BTC, has been in a downtrend since late 2022. In short, ETH has been underperforming BTC for the past two years.
Unless the descending channel is broken, ETH’s underperformance could continue.
Source: ETHBTC ratio, TradingView
However, Ethereum co-founder Vitalik Buterin maintained that ETH was still performing well despite the overwhelming market sentiment.
In a rebuttal against the idea that Solana had more developers than ETH and would be the most preferred in the next 5 years, Buterin said,
“I like how the chart downplays Ethereum’s success by listing L2s as separate categories, but even with that handicap Ethereum still looks awesome 😂😂”
Source: X
Meanwhile, ETH lost 8% of its value on Wednesday and fell below $2,500, erasing most of the recovery gains from August. The altcoin needed to reclaim $2,500 for a possible recovery trend to take shape.
