Ethereum gains ground on Bitcoin as the bear market persists

• Ethereum has gained around 300% against Bitcoin recently.
• BTC is trending higher than ETH YTD despite gains.

Bitcoin [BTC] and Ethereum [ETH] continue to be the leading digital assets. This fact was underscored when traditional financial institutions applied for ETFs for both these assets. Nevertheless, their price trends in the current market exhibit distinct differences, with ETH appearing to have a more favorable performance.

Realistic or not, here’s ETH market cap in BTC’s terms

Ethereum up against Bitcoin

The ongoing bear market has persisted, causing Bitcoin and Ethereum to experience declines in value due to a series of events within the cryptocurrency space.

As a recent Ecoinometrics post highlighted, Ethereum ceded ground to Bitcoin during the preceding bear market, erasing its previous gains. This divergence resulted in a diminished correlation between these two tokens. 

In the previous bear market, Ethereum gave away all its gains against BTC.

But not this time around.

ETH is up ~300% against BTC and hanging there. pic.twitter.com/Cv00IHSjfL

— ecoinometrics (@ecoinometrics) August 13, 2023

However, ETH’s price trend seems more favorable in the current bear market. According to the same Ecoinometrics post, it has gained roughly 300% against BTC. Nevertheless, a distinct pattern has come to light upon closer examination of the ETH/BTC correlation.

Bitcoin posts more gains YTD

Examining the price performance trajectory of Ethereum and Bitcoin revealed that, despite Ethereum’s impressive gain of over 300%, Bitcoin generated higher profits Year to Date (YTD).

A visual representation from an Into the Block chart indicated that Ethereum began the year with a stronger momentum compared to Bitcoin.

Nevertheless, Bitcoin managed to narrow the gap and maintained a higher trend. As of this writing, Bitcoin achieved a gain of approximately 77%, while Ethereum’s gain stood at around 54% based on the current price.

Analyzing the Bitcoin, Ethereum price trend

After experiencing several days of price declines, Bitcoin rebounded on the daily timeframe, returning to a profitable position. The chart indicated it reached the $30,000 price range on 8 August but subsequently encountered a five-day consecutive decline following the surge.

As of this writing, it was trading at approximately $29,700, reflecting a marginal increase of less than 1% in price. 

Also, Bitcoin has exhibited peaks and troughs throughout the year, but the price range tool showed that it had grown over 70% up to this point. This trajectory aligned with the observed price trend on the Into the Block chart.

Source: TradingView

Similarly, Ethereum’s daily price performance also displayed a slight gain. As of this writing, ETH was trading at around $1,840. It had a comparable price increase of less than 1%, mirroring Bitcoin’s movement.

Regarding Year to Date (YTD) performance, the price trend analysis tool illustrated that Ethereum appreciated over 50% in value.

Source: TradingView

365-day MVRV of BTC and ETH holders

An examination of the 365-day Market Value to Realized Value (MVRV) ratio for both Bitcoin and Ethereum holders revealed a double-digit level of profitability.

Nonetheless, BTC holders have achieved a greater level of profitability in comparison to ETH holders. As of this writing, the 365-day MVRV for BTC was approximately 19%, whereas ETH stood at around 12%.

Source: Santiment

How much are 1,10,100 BTCs worth today

Bitcoin and Ethereum often establish the predominant trends within the cryptocurrency market, with BTC exerting a more pronounced influence.

However, the latest statistics indicated a shifting landscape. ETH is making strides and has the potential to further enhance its position, especially with the increasing utility of the asset.