Ethereum Beats Bitcoin Performance Two Years Straight, What’s Next?

Tony "The Bull" Severino

1 year ago

3 mins read

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Ethereum only just broke its former all-time high, while Bitcoin left took that record back in 2020. However, an investment in the top-ranked altcoin at any point since the 2018 bottom, has resulted in a much higher higher ROI than an equal part USD investment in BTC.

Why does this incredible over-performance exist? And will it continue into the future, or is it time for a reversal in the trend?

Bitcoin Rising Tide Lifts Greater Crypto Market Once Again

The quote “a rising tide lifts all boats” applies well to the overall cryptocurrency market. When Bitcoin rises, it brings with it the rest of the market. And when it falls, the top crypto asset by market cap drags the rest of the market down with it.

Bitcoin’s highly-publicized meteoric rise in 2017 helped drive interest in other altcoins like Ethereum, Litecoin, and XRP. Ethereum had a secondary benefit of being the foundation of which many other notable altcoins at the time were being built on, further causing FOMO for the second-ranked crypto asset.

As strong as Bitcoin performed, altcoins surpassed the shocking ROI by miles. But when the bubble popped, Bitcoin, Ethereum, and the rest of altcoins came crashing down.

Another popular quote, “the bigger they are, the harder they fall,” then came into play. Altcoins that soared tens to hundreds times higher than Bitcoin did, crashed as much as 99% while the top cryptocurrency managed to retain more with only an 84% fall.

And it is because the recovery has been so much longer in Ethereum that it has resulted in the altcoin outperforming Bitcoin for the last few years straight.

If you bought $ETH at any time in 2019, 2020 or 2021 you now have more $USD value than you would by holding $BTC.

— HornHairs 🌊 (@CryptoHornHairs) January 24, 2021

Ethereum And Altcoins Could Be More Profitable Short-Term, Here’s Why

According to one crypto analyst, buying Ethereum at any point 2019 and on, would have resulted in a stronger USD return than an equal investment in Bitcoin.

The statement is, however, true starting with the low put in around 2018. From December 2018 on, any investment Ethereum would have performed vastly better than BTC held until now.

Ethereum is up 1700% during the same period Bitcoin is climbed 1000% | Source:  ETHUSD on TradingView.com

During the same timeframe, Ethereum has risen 1700%, while Bitcoin has only grown a little over two-thirds of that at 1000% ROI.

Having so much more to recover, and a market far less liquid and a lower market cap, has resulted in the money coming in moving Ethereum much further than each BTC.

Technicals suggest that this trend is set to continue for some time. And if the next altcoin season is anything like the last, even though Bitcoin will blast off to shocking record prices, the most wealth could be made by investing in the underdogs instead.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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