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Analyst Benjamin Cowen predicts that Ethereum (ETH) is set to rise against Bitcoin (BTC) as early as 2025, following historical trends that suggest ETH typically bottoms out in December or January. He anticipates that while ETH may remain weak against BTC for the rest of this year, it will likely see improved quarterly returns in 2025 and possibly early 2026. Currently, ETH/BTC is valued at 0.03444 ($3,343.71).
Ethereum's investor sentiment has plummeted to its lowest point in over a year, sparking concerns amid market uncertainty. Despite this, analysts predict a potential rally, citing historical patterns where extreme pessimism precedes significant price surges. The $4,000 resistance remains a critical hurdle, with a breakthrough potentially leading ETH toward $5,000, while maintaining support at $3,800 is essential to avoid deeper corrections.
On December 16, net assets in U.S. Bitcoin exchange-traded funds (ETFs) surpassed those in gold funds for the first time, reaching over $129 billion compared to gold's nearly $128 billion, according to K33 Research. This shift highlights a growing institutional interest in Bitcoin, particularly following the launch of spot BTC ETFs in January. BlackRock's iShares Bitcoin Trust leads the market with nearly $60 billion in assets, reflecting a significant trend as investors seek alternatives amid rising geopolitical tensions and economic uncertainties.
Analyst Benjamin Cowen suggests that Solana (SOL) holders may experience similar challenges to those faced by Ethereum (ETH) traders in past cycles. He notes that the SOL/BTC trading pattern mirrors that of ETH/BTC, indicating potential for significant price fluctuations, including a major dip followed by a recovery and a possible lengthy downtrend thereafter. Cowen emphasizes that a breakdown in price does not signify the end, as a rebound could occur, reminiscent of ETH/BTC's trajectory.
A hardware wallet user reported a loss of 10 BTC, valued at approximately $100,226, linked to a phishing attack. The user, known as "Anchor Drops," also lost $1.5 million in NFTs, with experts suggesting that a phishing transaction from 2022 may have allowed a hacker to drain the wallet after years of dormancy. Ledger emphasized the importance of user vigilance and understanding wallet interactions to prevent such incidents.
Analyst Benjamin Cowen predicts that Bitcoin's return on investment (ROI) will likely be lower in the current market cycle compared to previous cycles. He notes that while Bitcoin's ROI is currently between 6.1-7x, it may eventually fall below the 5.55x seen two cycles ago due to its larger market cap leading to diminishing returns. As Bitcoin trades at $101,100, Cowen emphasizes the challenges of achieving significant price movements in later cycles.
Ethereum's recent price surge above $4,000 faces potential pullback risks, as indicators like Daily Active Addresses and Cumulative Volume Delta show declining user engagement and selling pressure. Despite bearish signals, analysts predict a recovery phase, with price targets reaching $15,937 by May 2025, supported by strong ETF inflows.
Riot Platforms plans to raise $500 million through a private bond issue to acquire more Bitcoin as prices surge near all-time highs. The offering will include senior convertible notes, with funds aimed at Bitcoin purchases and general corporate purposes. Riot currently holds 10,427 BTC and has seen significant activity in the market, with other miners also raising substantial funds recently.
Ethereum's price is showing signs of potential growth, with traders speculating a possible retest of its all-time high of $4,878 within the next week. Currently priced at $3,946, a 24% weekly gain would be needed to reach this milestone. Analysts note that Ether's recent breakout past $4,000 and structural changes in the market could lead to significant upward movement, with minimal resistance ahead.
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