Bitcoin (BTC) has surpassed Ether (ETH) in recent days as BTC topped $ 50,000 for the first time in history. Meanwhile, a well-known cryptocurrency trader explains that this is “simple math” due to the growing institutional demand for BTC.
While ETH surpasses Bitcoin in USD since the beginning of the year, Bitcoin is picking up in February, up 60% from 50% Ether.
Ether has increased almost 6% in the last 24 hours when Grayscale added 20,000 ETH to the Ethereum Trust. However, BTC in gray tones is valued at $ 34 billion, well above its $ 5.8 billion ETH reserves.
More institutional demand for Bitcoin compared to ether
Meanwhile, Bitcoin Jack, a trading alias, indicated that despite recent ETH streams, an organization, MicroStrategy, is adding 20,000 BTC worth about $ 1 billion to the balance sheet.
Businesses currently own more than 1.2 million bitcoins worth more than $ 48 billion, according to data recently compiled by Bitcointreas – a figure that does not yet include Tesla.
In other words, there is a big difference between the amount of bitcoin acquired by organizations versus ether. Based on the trend, the trader said that BTC surpasses ETH, which is not surprising. He said:
Grayscale is adding $ 20,000 ETH to its customers, and today MicroStrategy, an organization, is adding 20,000 BTC to the balance sheet, and anytime Bitcoin’s superiority should come as no surprise, it’s simple math.
Occupation with retail and business
In the short term, one of the variables that can stimulate a more active upward trend in Ether is the inclusion of Ethereum futures contracts from CME. As the Cointelegraph reported, the Chicago Mercantile Exchange placed Ethereum futures on February 9, the day ETH broke through and reached a new record high.
Less than two weeks have passed since the CME Ethereum futures market was launched, and it is likely that many trading offices and institutions are still preparing the infrastructure. As such, the actual ETH demand and trading volume in the CME Ethereum futures market will probably take time to accumulate, as we saw with Bitcoin, for funds to start trading assets actively.
Meanwhile, when the crypto-bull market ends, large equity funds and retail investors may face FOMO, according to Paolo Arduino, CTO at Bitfinex. To explain:
Paolo Arduino, CTO of Bitfinex: “Large equity funds and retail investors may face FOMO (fear of loss) as the market value of Bitcoin rises to around 1 trillion dollars. With Bitcoin hovering around $ 51,000, Ethereum also hits “high-time highs. Both technologies represent major advances that even VIPs in the digital token area are still struggling with. Instead of following it blindly or quickly, you must first with this amazing technology, whether you are a financial investor or a budding retail investor. ”
Finally, one of the main factors behind Bitcoin digital store offerings is the specific BTC supply as opposed to the total amount of unknown Ether. Therefore, along with the brand image, this aspect of digital scarcity is probably the first thing that drives organizations towards Bitcoin.
Meanwhile, other cryptocurrencies such as ETH remain surrogates or “altcoins” and are usually considered for diversification, albeit in much smaller amounts, if any, as evidenced by Grayscale’s assets.