Opinion

Ethereum To OutPerform Bitcoin in 2023? Here’s What Analyst Think

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Aug 2, 2022

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The year 2022 has not been a good year for Bitcoin, as it has been under extreme bearish pressure and fallen more than 70% from its ATH.

Could the first currency in the world lose its ‘King’ status soon?

The current developments in the crypto space have led many analysts and investors to turn their attention toward altcoins and their rapid progress. 

Ethereum On Upper Hand Compared To Bitcoin

The possibility of Ethereum replacing Bitcoin as the leading cryptocurrency is “very realistic,” said Bodhi Pinkner, an analyst at Arca. 

According to Pinkner’s forecast, the ETH merger, anticipated to occur in September, will cause the second-largest cryptocurrency to deflate. After numerous delays involving proof of work, Ethereum will eventually transition to proof of stake.

Earlier this month, Lucas Outumuro, an analyst at IntoTheBlock, predicted that the second largest cryptocurrency’s issuance would be between -0.5% and -4.5%. As a result, Ethereum will eventually be smaller than Bitcoin, giving it a competitive edge. Another fact that works against BTC’s favor is that the number of tokens available will continue to decrease with time. 

The value of the ETH/BTC pair has risen by 34% over the past month due to the anticipation surrounding the merger upgrade. The pair has, however, decreased by more than 12% from its 0.82 yearly high and 54% from its ATH set in June 2017.

However, Pinkner reckons Ethereum could profit from the current macro situation.

The Role Of The Federal Reserve

The Federal Reserve has been pressurizing cryptocurrencies as it has constantly been trying to tighten monetary policies since the end of 2021, dramatically impacting how much the most significant altcoins are worth.

This is another reason why Ethereum and other top cryptocurrencies have been eating away at Bitcoin’s market share since the beginning of 2021.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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