The victory of Donald Trump as the 47th U.S. president has caused a positive impact on the cryptocurrency market, leading to a surge in the value of several digital assets.
Analysis of Bitcoin and Ethereum’s Price Performance
Bitcoin [BTC] has notably taken advantage of the post-election fervor by surpassing its previous record high set in March. The current trading price of Bitcoin stands at $76,121.63, reflecting a 1.58% increase in the last 24 hours and an 8.68% jump over the past week.
Similarly, Ethereum [ETH], the second-largest cryptocurrency by market capitalization, has broken through the important $2,500 resistance level and is currently trading at $2,926.80. It has witnessed a remarkable 12% surge in value over the week.
These combined developments indicate a steady bullish trend for the leading cryptocurrencies following Trump’s win in the election.
Despite Bitcoin’s Lead, Raoul Pal Favors Ethereum
A comparative analysis of Bitcoin and ETH’s price movements shows Bitcoin outperforming market expectations by reaching new highs. In contrast, Ethereum, which was anticipated to breach the $4,000 mark, is yet to achieve that milestone.
Raoul Pal has argued that Ethereum might soon surpass Bitcoin in terms of performance, suggesting a possible shift in market dynamics.
“I’ve been anticipating ETH to regain momentum against BTC. This trend is partly influenced by the risk appetite cycle, coupled with the recent election results.”
Factors Supporting Pal’s Argument
Pal has further outlined various factors that could drive Ethereum’s potential growth over Bitcoin. He emphasized the positive evolution of cryptocurrency regulations, an aspect expected to further enhance in the upcoming period. As regulatory frameworks become clearer and more robust, Pal believes that with its significant role in decentralized finance (DeFi), Ethereum is primed to reap substantial benefits.
Moreover, the rising popularity of DeFi tokens presents attractive opportunities, and Ethereum’s foundational position in this sector underlines its value. Additionally, Ethereum’s robust security and trustworthiness position it favorably for integration into traditional finance systems, where its versatility and scalability could appeal to institutional investors.
Future Prospects
Pal concludes by stating,
“I foresee ETH outshining BTC for the remainder of the cycle but lagging behind SOL, with $SOL following $SUI, reflecting the advanced stage of $SUI’s adoption.”
While Pal’s perspective faced criticism from Chris Close, he stood by his assertion, remarking,
“Everyone encounters challenges, my friend. However, these challenges should not deter us from achieving greatness.”
Considering Ethereum’s recent positive performance and its ongoing attempts to breach the $3,000 mark, the upcoming days will determine whether it can maintain its upward trajectory or not.