ETH vs BTC Marketing Analysis
The crypto industry is at a crucial turning point. Although the macroeconomic indicators remain bearish, the looming hyperinflation plays in favor of solid store-of-value assets like Bitcoin. And with the cryptocurrency markets turning to the upside, eager investors are looking for the best opportunity to enter this promising niche.
And for many, the two most solid investments remain Bitcoin and Ethereum. But if you could choose only one, which one would it be? Could now be the right time to swap ETH to BTC to make some short-term profits? This article will try to answer this question by analyzing both BTC and ETH’s fundamental and technical indicators.
To explain Ethereum’s success, we need to go back in history for almost a decade. The first generation of blockchain solutions like Bitcoin had a single purpose. They served as payment networks or for storing value in a secure and decentralized way.
Ethereum changed this narrative by introducing the concept of smart contracts and decentralized applications. It functions as a global supercomputer, accessible to anyone and everyone, enabling hundreds of new use cases for blockchain technology.
Today, Ethereum remains the leading smart contract platform in the blockchain industry. As a pioneer in this niche, the first EVM network has amassed the strongest community of developers and users that wished to dabble in DeFi, NFTs, and metaverse games. Despite higher scalability, newer layer1 solutions haven’t been able to take a significant market share from Ethereum.
Bitcoin is the number 1 crypto in both market share and adoption. It’s the oldest and most popular cryptocurrency, so much so that it has become a mainstream financial asset in 2023. Its strength lies in the decentralization and security of its payment network.
Additionally, investors regard it as a strong store of value asset, mainly due to its limited and controlled supply. More precisely, there can only be 21 million bitcoins ever produced, allowing this asset to become scarcer over time.
This means that as banks are failing and inflation seems to become an unstoppable issue, many investors are looking for a safe haven. Bitcoin stands out the most thanks to its decentralized paradigm and deflationary model.
ETH to BTC Retrospective
ETH and BTC have been correlating in value for quite some time. Both of these cryptocurrencies stand out as safer than the rest of the industry, unlike more volatile assets like https://godex.io/versus/xdc-vs-cspr.
To support this thesis, let’s take a deeper look at their historical price actions. To make things simpler, we are analyzing the last two bull/bear cycles and BTC to ETH price correlations.
During the 2017-2018 bull market, Bitcoin’s price went from $600 to $20,000, resulting in a 3,100% price increase in 1 year. During the same period, Ethereum increased from $10 to $1,200, amounting to an 11,900% price increase.
In 2020-2021, Bitcoin went from $3000 to $69,000, allowing investors to make 2,200% returns in the cycle. Similarly, Ethereum increased in price from $150 to $4,600, registering a nearly 3,000% increase.
We can deduce that the price of the assets slowly correlated to mimic each other’s volatility as adoption has become more widespread.
ETH to BTC Future Value
With that in mind, let’s check some future price predictions from reputable sources on the internet. For reference, BTC is currently trading at $28,000, whereas ETH is trading at $1,800.
For BTC, Priceprediction.net provides a target of $81,436.33 for 2025. The website gives a target of $5,300 for ETH for the same period, providing similar returns.
Is It Time to Swap ETH for BTC Now?
While the price of Bitcoin and Ethereum often correlates in bull markets, we need to take the inflation narrative into consideration this time around. Even though analysts expect BTC and ETH prices to return to a similar pattern in the long term, Bitcoin has the upper hand in the near future.
Investors are looking for a safe haven for their assets as the US dollar continues to lose value, and Bitcoin looks like a better choice here. If you are looking to trade ETH to BTC, the best moment may be at the present.