Ethereum Could Continue Underperforming Bitcoin Even After Spot ETF Approval, Says Benjamin Cowen – Here’s Why

A widely followed crypto analyst believes that Bitcoin (BTC) could continue to outperform Ethereum (ETH) even if a spot ETH exchange-traded fund (ETF) were approved as expected.

In a new video update, crypto strategist Benjamin Cowen tells his 803,000 YouTube subscribers that Bitcoin could continue to have an edge over Ethereum as past narratives about ETH outperforming BTC haven’t lived up to the hype.

“I ultimately don’t think the spot ETF for ETH will necessarily keep the ETH/Bitcoin valuation from staying at relatively low levels… There’s been so many narratives that have been given out over the last few years as to why the ETH/Bitcoin valuation would never go to even the current levels that it’s at… In 2022 when ETH/Bitcoin was at .08 BTC, if you had told them that it was going to go down into the mid-.04s BTC by 2024 they would have laughed at you…

We have these narratives about the transition from proof-of-work to proof-of-stake on this deflationary mechanism theoretically causing the Ethereum/Bitcoin valuation to ‘hold up well’ and that didn’t play out. And so it sort of gave us a glimpse into the idea that, hey, maybe this is more about monetary policy than it is about anything else.”

ETH/BTC is trading for 0.05416 BTC ($3,112) at time of writing.

The analyst also says the Bitcoin dominance (BTC.D) chart excluding stablecoins could decline in the near term only to increase in the fourth quarter, based on historical precedence in both 2016 and 2020.

“There is a case to be made that whatever pullbacks there might be will likely be over some time the next month or so… In Q4 of halving years, we have seen dominance go up both times.”

The BTC.D index tracks how much of the total crypto market cap belongs to Bitcoin. A bearish BTC.D chart suggests that altcoins are about to outperform Bitcoin.

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