Bitcoin-Ether ratio flashes potential warning about crypto rally
asset, with second-ranked Ether hints at a possible waning of risk appetite in crypto.
The ratio scaled 20 this week and reached the highest level since April 2021, reflecting more resilient demand for the oldest cryptocurrency rather than the smaller rival.
This pattern could be “a very early signal” of FOMO — or fear of missing out — morphing into “fear” if Ether is viewed as a proxy for sentiment toward smaller tokens, crypto asset trading company QCP Capital wrote in a note on Friday.
Bitcoin reached a record high of $73,798 in mid-March atop a surge of inflows into dedicated US exchange-traded funds that debuted in January. The token has since retreated about 9% as ETF demand cooled. A gauge of smaller digital assets has slumped even more over the same period, shedding some 20%.
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View Details»Looking beyond the crypto market, a potential Bitcoin top as investors lose appetite for cryptocurrencies “signals a weaker stock market,” Stifel Nicolaus & Co. strategists including Barry Bannister wrote in a note this week.
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