This pattern could be “a very early signal” of FOMO — or fear of missing out — morphing into “fear” if Ether is viewed as a proxy for sentiment toward smaller tokens, crypto asset trading company QCP Capital wrote in a note on Friday.
Bitcoin Price Relative to Ether at Highest Since 2021
Bitcoin reached a record high of US$73,798 in mid-March atop a surge of inflows into dedicated US exchange-traded funds that debuted in January. The token has since retreated about 9% as ETF demand cooled. A gauge of smaller digital assets has slumped even more over the same period, shedding some 20%.
See also: Alexander Hamilton’s three lessons for stablecoins
Looking beyond the crypto market, a potential Bitcoin top as investors lose appetite for cryptocurrencies “signals a weaker stock market,” Stifel Nicolaus & Co strategists including Barry Bannister wrote in a note this week.
Crypto traders are now awaiting a four-yearly event known as the Bitcoin halving, which reduces new supply of the token. Doubts have emerged over whether the halving will live up to its reputation of being a bullish tailwind.
Bitcoin was steady at US$67,825 as of 5:25 p.m. Friday in New York, while Ether was also little changed at US$3,340.
