Benzinga - The Bitcoin-Ether ratio, a significant indicator in the cryptocurrency market, is suggesting a potential warning for the ongoing crypto rally.
What Happened: The ratio, which compares the price of Bitcoin (CRYPTO: BTC) with that of Ether (CRYPTO: ETH), has hit 20 this week, its highest level since April 2021. This implies a stronger demand for Bitcoin over Ether, reported Bloomberg on Friday.
According to crypto asset trading company QCP Capital, this could be an early sign of FOMO (fear of missing out) turning into fear, particularly if Ether is seen as a sentiment indicator for smaller tokens.
Bitcoin recently reached a record high of $73,798 in mid-March, driven by inflows into dedicated U.S. exchange-traded funds that launched in January. However, it has since dropped about 9% as ETF demand cooled.
See Also: ‘Dogecoin Killer' Shib Inu's Burn Rate Surges 2,300%
Strategists at Stifel Nicolaus & Co., including Barry Bannister, suggested that a potential Bitcoin top as investors lose appetite for cryptocurrencies could signal a weaker stock market.
Price Action: As of writing, Bitcoin slipped 2.12% to $67,073, while Ether fell by a similar proportion to $3,273. Most other major tokens also experienced losses, according to the data from Benzinga Pro.
Why It Matters: The surge in the Bitcoin-Ether ratio comes despite recent bullish predictions for Bitcoin. Noted crypto analyst, Lark Davis, forecasted a prosperous 2024 for Bitcoin, attributing the potential upswing to two significant events. This was followed by a surge in major cryptocurrencies on Thursday evening, despite hawkish comments from Minneapolis Fed President Neel Kashkari.
However, the market has shown signs of fatigue, with AI and Big Data cryptocurrencies experiencing a notable surge, as reported by market intelligence platform, Santiment. Furthermore, renowned financial expert, Raoul Pal, remains optimistic about the future of cryptocurrencies, predicting a rapid adoption rate despite recent market downturns.
Read Next: Dogecoin’s 35% Monthly Gains And ‘Elon Musk Effect’ Means It’s ‘Probably Going To Do Something Silly Like Go To $1,’ Says Trader
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