While random altcoins can temporarily outperform Bitcoin and ETH in the market, the top two digital assets are still way ahead in terms of market valuation. With market capitalizations of $ 1.14 trillion and $ 441 billion, respectively, BTC and ETH affect market liquidity and certain assets are affected by their movements.
Over the course of 2021, both Bitcoin and ETH have mastered bullish moves during their rallies, and at the time of writing, a similar situation is unfolding.
Source: trade view
Bitcoin is currently topping the October charts with a 38.5% growth compared to ETH’s 29.88%. While both managed to hold positions above the MA, the momentum for Bitcoin may be right.
According to Skew charts, the differences between the real volatility (RV) of ETH Bitcoin have dropped to annual lows after 1 and 3 months, suggesting that Bitcoin has a higher chance of moving faster on the charts.
Source: Skew
Comparing the potential volatility (IV) shows a similar situation. The ETH Bitcoin 1 month ATM volatility spread suggests that traders expect BTC to be more volatile in the next few days as IV drops to yearly lows.
Source: Skew
Historically, ETH’s lower RV and IV values compared to Bitcoin have resulted in a strong performance for the crypto king. The current market structure also points to the point at which ETH is still encountering resistance from the highs in September 2021, but BTC is already close to the ATH range reached in May.
Therefore, investing in Bitcoin can be more profitable in the short term than in ETH.
Source: trade view
Throughout 2021, ETH outperformed Bitcoin in every quarter. Even during the bearish rally in the second quarter, Bitcoin fell as much as 40%, but ETH surprisingly ended the quarter with a gain of 18%. So while the short-term momentum is supporting BTC in the bullish charts, ETH had a better long-term ROI in 2021.
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Minh Anh
According to AMBCrypto
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