After the US Federal Reserve cut interest rates by 50 basis points in September, the price of Bitcoin rose 14%, briefly surpassing $69. According to analysts at Kaiko Research, this was due to strong inflows into BTC-based exchange-traded funds and improved risk sentiment.
Ether, despite similar macroeconomic factors, continues to lag behind the flagship cryptocurrency. Following the Fed's rate cut, the leading Altcoyin increased in price by approximately 12%.
Analysts at Kaiko Research said the persistent gap between Ethereum and Bitcoin is largely due to the latter having a first-mover advantage over institutional investors. The experts noted that open interest in Bitcoin futures on Chicago's CME recently hit a record high, while futures Ethereum remain relatively illiquid.
Demand Ethereum was also weak in spot markets. In October, Ether lagged behind most altcoins in terms of trading volume. The gap in trading volume between Ethereum and the top 50 crypto assets rose to their highest level since March, analysts at Kaiko said.
Bitwise's head of research in Europe, Andre Dragos, also noted that the total investment in Ethereum continues to lag behind Bitcoin.
For sustainable growth, we would need to see a major reversal in capital flows in Ethereum , similar to what happened in mid-2021,” Dragos said.
Interestingly, in November 2021, Ether reached an all-time high of around $4800, and Bitcoin — over $68. Since then, BTC has surpassed its previous record, recording a new high of over $000 in March of this year, while Ethereum has yet to recover from its peak.
