The altcoin, Ethereum [ETH], has been experiencing a decline in its value against Bitcoin [BTC] since May 2022, as per AZC News analysis. The last six months have been particularly unfavorable, with a drop of 18.80% to 0.048 BTC.
However, the recent compromise of the U.S. SEC’s X account has led to hackers announcing the approval of all spot ETFs, causing a sharp increase in volatility and prices of cryptocurrencies. In the midst of this, ETH has gained.
ETH Benefits from Fake Approval
At present, ETH’s price is $2,380, which is a 3.37% increase in the last 24 hours. Additionally, the ETH/BTC value has increased to 0.052 BTC, which is a 2.05% increase against BTC.
The optimism surrounding the potential approval of Bitcoin ETFs has been a major reason for the development, as many market participants believe that it would be great for the market. However, the approval of spot ETFs has also been favorable for ETH’s performance.
Bitcoin has outperformed Ethereum on a Year-To-Date (YTD) basis, with a 4.05% jump since the beginning of the year, while ETH had a 0.95% increase. However, the SEC’s resolution could change the current scenario. Before the recent hack, some of the ETF applicants mentioned that the regulatory agency would disclose its decision on the 10th of December.
But recent events showed speculation that the resolution could again be delayed. If this happens, then the predictions that Bitcoin would price higher could go down the drain. However, if the SEC endorses them, ETH might find it hard to displace BTC’s dominance.
Q1: Not Just Bitcoin’s Time to Shine
Despite the projection, there is a chance that the altcoin will enjoy a dominant season in Q1 2024. One reason for this is that the Ethereum Dencun upgrade would be completed between January and February. The upgrade aims to improve the security and scalability of the Ethereum blockchain. However, data obtained from Santiment showed that development activity on the blockchain had slowed down.
Related: Bitcoin Faces Resistance Below $48K Following ETF Approval
So, the decline here, implies that there has not been a lot of polishing on Ethereum. However, as the Dencun Testnet draws nearer, the state might change for the better. Should this be the case, ETH’s value could be affected and possibly flip bullish.
AZC News also compared the amount of BTC and ETH holders. As of this writing, ETH holders were 112.18 million. Bitcoin, on the other hand, had 52.64 million. This data showed that, despite ETH’s inconsistencies, a lot of players believe in its potential.
