Ethereum's decline against Bitcoin continues

In addition to the negative factors affecting the broader market, the ETH/BTC pair has continued to decline following the launch of futures ETF (Exchange Traded Fund) products, which are considered a failure for the Ethereum market, with the pair falling to its lowest level in the last 15 months.

The ETH/BTC pair, which has been in a general downward trend, has accelerated this decline, especially as October began.

The pair, which was at the 0.061 level at the beginning of the month, fell another 7% over a 10-day period, dropping to 0.056 this week, a level last seen in July 2022.

Last week, 6 Ethereum futures ETFs were approved in the US market.

This was touted as a development that would expand options for institutional investors to invest in Ethereum indirectly, but the fact that demand remained at an average level of 10 million dollars led to disappointment.

On the other hand, Bitcoin futures ETFs, which were launched during the bull market in the cryptocurrency sector, broke records with a trading volume of 1 billion dollars on their first day. In this period, where bear market conditions persist, the extremely low risk appetite has emerged as the biggest factor in the lack of interest in ETH ETFs.

INTEREST IN ETHEREUM IS WANING

When this development is combined with other research results, it appears that interest in the Ethereum market has continued to decline recently. Blockchain research firm Kaiko reported earlier this week that ETH spot trading volumes have remained stagnant for the last 2 months and have only exceeded 2 billion dollars on a few days.

The two cryptocurrencies that dominate the market are viewed differently by investors during this period. Bitcoin is accepted as digital gold, especially for long-term investors, and can increase its demand even during periods of stagnation.

At this point, the fact that the largest cryptocurrency has increased its dominance rate from the 40% region to levels near 50% can be seen as the greatest example of this. On the other hand, Ethereum is accepted more as a technology product due to its operating principle. This is considered the biggest factor in Ethereum being in less demand as a riskier asset in the current environment.

News Source: 12punto