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Breaking News: FTX Recovery Trust Set To Disburse $1.6 Billion By Month-End, FTT Price Skyrockets
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Breaking News: FTX Recovery Trust Set To Disburse $1.6 Billion By Month-End, FTT Price Skyrockets

Ethereum Price 2023 Breakthrough: Surpassing Bitcoin, Altcoin Surge Next?

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Ethereum price ETH ETHUSDT Bitcoin BTC BTCUSDT

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For the first time in 2023, the Ethereum price has outperformed Bitcoin across several metrics, hinting at a fundamental shift in market structure. The second cryptocurrency by market capitalization follows the general sentiment in the sector, setting new yearly highs.

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As of this writing, the Ethereum price trades at $2,300 with a 4% profit in the last 24 hours. Over the previous week, the cryptocurrency recorded a 10% profit, with most of the altcoin sector still lagging the current price action.

Ethereum Price ETH ETHUSDT
ETH’s price trends to the upside on the daily chart. Source: ETHUSDT on Tradingview

Ethereum Price Signals Strength For Altcoin Sector?

A report from BlockScholes posted by the options platform Deribit indicates a spike in the Ethereum price volatility back to its levels above Bitcoin’s. ETH’s shift in market structure hints at traders and institutions gearing up for early 2024.

The report claims that the potential approval of a spot in the US ETH Exchange Traded Fund (ETF) is behind the current price action. This new dynamic suggests that the bullish sentiment above this event slipped from Bitcoin to Ethereum.

As seen in the chart below, Ethereum records a higher return than Bitcoin for the first time since July 2023. The surge in returns, BlockSholes said, allowed ETH to buck a persistent downtrend, but overall, the cryptocurrency’s performance remains in its yearly range.

Ethereum price ETH ETHUSDT chart 2 BS
ETH’s price returns higher than Bitcoin’s since mid 2023. Source: BlockScholes via Deribit

In other words, the Ethereum price is doing better than in other periods across 2023 but has yet to resume a bullish momentum concerning Bitcoin. However, the report noted:

This reversal is not yet strong enough for us to be confident in a return to the market structure that we had previously come to expect, but does indicate that the effects of speculative bets around the application of a spot ETF are not limited to BTC. This is echoed by the implied volatilities for both assets across the term structure, which forecast similar volatility levels for both assets.

What Favors An Altcoin Rally

In addition, the report noted a decline in the US dollar as measured by the DXY Index. Risk assets can thrive as the currency trends lower, potentially hinting at a loose monetary policy by the Federal Reserve (Fed).

If Ethereum continues gaining bullish momentum from its current levels, the entire altcoin sector could see further profits. The report indicates that most entities and traders are pricing in a “risk event” by the end of January 2024.

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Spot Ethereum ETF timeline

Bloomberg Experts Forecast Timeline For Spot Ethereum ETF Approval

1 year ago

Thus, Bitcoin and Ethereum may see a more significant rally by that time. Whichever coin prevails might reveal more information on the subsequent trend; if Ethereum outperformed, then altcoins are more likely to follow.

Cover image from Unsplash, chart from Tradingview

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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