Bitcoin (BTCUSD) is the largest and best-known cryptocurrency in the world. It is the digital currency that many believe will revolutionize digital assets in the future. Bitcoin remains the dominant player, it has a market cap value of $847.66 billion, accounting for around 44% of the entire cryptocurrency market of $1.93 trillion market value.
However, there is another cryptocurrency (Ethereum - ETHUSD) that may rival the king of cryptos. Ethereum has gained considerable market share moving up quickly to be the number two cryptocurrency with a market cap value of $356.18 billion or 18.5% of the entire crypto market.
Although Bitcoin still dominates the news and trading, some believe there are signs to suggest the second largest crypto, Ethereum’s Ether, will overtake Bitcoin in the future. Ethereum is viewed by digital experts to be a more reliable and useful digital currency.
Bitcoin has gained 52.05%, while Ethereum has risen 312.26% on a year-to-date basis. The gains far exceed the more traditional assets like S&P 500 index (SPX +18.91% YTD), the Dow Jones Industrial Average (INDU +15.67%), the Nasdaq Composite Index (COMPQ +14.39%), US Dollar Index (USD +3.67%), and the gold futures (GOLD -8.33%).
Bitcoin is valued for its store of value and as a hedging tool against the US Dollar. However, Ethereum is a digital currency that can act as the foundation to an open-source network that powerful software applications can reside on. Ether will allow software programmers to write specific programs on its networks, creating a highly desirable and flexible development platform for innovation. Most importantly, it can serve as the backbone for decentralized financial networks, including Defi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs)
Because digital currency and blockchain technology are relatively new, it is difficult to determine if crypto will survive, much less become a significant asset class. Regulators and central banks are studying digital currencies such as Bitcoin, Ethereum, and other cryptos as legitimate financial products and what risks, if any, to retail investors and the global financial markets.
Enclosed below are technical commentaries on Bitcoin and Ethereum. As can be expected, cryptocurrencies are volatile. We recommend traders and investors adhere to a disciplined risk management strategy when venturing into crypto trading.