Ethereum (ETH) Makes a Comeback as Research Shows Long-Term Investors Favour ETH Over Bitcoin (BTC)

Research firm K33 has just released a report outlining a comeback for Ethereum. The report highlights that positive news around the Spot Ether

Research firm K33 has outlined a comeback for Ethereum in a new report, while Bitcoin faces sell pressure from upcoming Mt. Gox fund re-distributions.

Key Takeaways

K33 anticipates a strong demand for recently listed Ether funds, despite initial sell pressure.

Long-term investors are favoring Ethereum over Bitcoin, according to IntoTheBlock.

Analyst Michaël van de Poppe predicts a new altseason, driven by anticipation of multiple rate cuts.

After peaking in October 2023, altcoins experienced a significant rally, as observed by van de Poppe.

The OTHERS/BTC chart suggests that the bottom for altcoins compared to BTC may be in, according to the analyst.

A recent report by research firm K33 has highlighted positive news around the Spot Ether exchange-traded funds (ETFs) that could act as a catalyst for the price of Ether.

On the other hand, Bitcoin is facing significant sell pressure from the imminent re-distributions of Mt. Gox funds.

Moreover, several governments have been selling Bitcoin that was seized during busts of illegal activities.

While initially the newly listed Ether funds may face sell pressure – much like the Bitcoin funds did post trading start – many analysts see strong long-term demand for the funds. Predictions rank from US$5bn (AU$7.5bn) inflows in the first six months to US$15bn (AU$22.5bn) in the first 18 months.

Long-Term Investors Favour Ethereum Over Bitcoin, Research Shows

According to analytics platform IntoTheBlock, long-term Bitcoin holders are reducing their BTC holdings, while Ethereum holders are increasing their positions. 78% of ETH is currently held by HODLers who have been in their positions for over 12 months.

This suggests that with an increasing interest in Ether funds (once approved), the price will continue to appreciate, with some suggesting US$4K (AU$6K) ETH soon.

$ETH Descending Channel Breakout & Retest is confirmed on the 4hr timeframe Chart..✅

C'mon bulls, let's push it to $4,000! ??#Crypto #ETH #Ethereum pic.twitter.com/eQhDlseWXh

Renewed Altseason To Lift Other Assets Too

Analyst Michaël van de Poppe even went so far as to declare a new altseason might be upon us, which would see many assets rally, not only ETH.

He said the recent FED meeting – the “most hawkish” in a year – has turned sentiment bearish on crypto according to Jerome Powell’s speech.

But, treasury bond yields decreased a lot, which showed that the market expects rate cuts rather than continued rate hikes.

Meanwhile, multiple rate cuts are expected, rather than the single cut the FED is anticipating.

Van de Poppe added that in October 2023, as yields peaked, we saw a huge altcoin rally.

The analyst points out how LINK saw a correction in H1 2022 and then went on to rally 120% in H2.

And, Chainlink repeated this in 2023, when it saw a second half growth of 150%.

Now, looking at the OTHERS/BTC on the chart below, it might be the bottom for alts versus BTC. pic.twitter.com/030007338D

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