Ethereum outshines Bitcoin as the Merge approaches
Bitcoin’s feeling a bit left out with investors focused on Ethereum ($ETH), outperforming Bitcoin ($BTC) in 2022. This week, Bitcoin briefly traded below $19,000, bringing it closer to its $17,600 low in June.
Bitcoin isn’t getting an upgrade… Ethereum is. In recent months, attention has shifted towards Ethereum’s upcoming network upgrade, The Merge.
- Over the past month, $ETH has been down 2% while $BTC is down 16%.
- In comparison, the S&P 500 is down 4%.
Traders are positioning for the Merge, and $ETH could likely continue to outperform $BTC as we enter the Merge — expected September 13-15.
Where will crypto move in the next month? Just ask the stock market.
Looking forward: Per Kevin Loo of IDEG Asset Management (BBG) — “the macro narrative… will drive risk assets,” and “it’s likely that we could actually go slightly lower.”
Like the S&P 500, September has historically been the worst month for Bitcoin. But this month, market moves are largely dominated by two key events:
- The August inflation report on September 13.
- The expected Fed rate hike on September 21.
Any moves are likely to be short-lived until after these events — which will give investors more clarity on the path of interest rate hikes.