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ETF Anticipation Ends in ‘Sell-the-News’ Slump for BTC, ETH Sees a Notable Boost: Glassnode

Bitcoin’s value dipped below $39,000 this week, erasing almost all gains made in the last two months, which were fueled by expectations of approval for a spot BTC ETF in the United States. But the introduction of the much-anticipated funds ended up being a classic “sell-the-news” event.

The term is a well-established concept in capital markets, illustrating how asset prices, leverage, and market sentiment work in tandem to drive prices upward, leading up to a positive event, only to see a subsequent decline.

Bitcoin ETF Approval Fizzles into ‘Sell-the-News’

From mid-October, the digital asset markets displayed robust performance, driven by ETF speculation and narratives surrounding capital rotation. Since BlackRock initially filed for its ETF, Bitcoin’s market cap has risen by more than 65%, with the overall altcoin market cap experiencing a similar increase of over 69%.

However, Ethereum has shown less bullish momentum, trailing the broader altcoin space by a decline of 17% over the same time frame, according to the latest estimates of on-chain intelligence platform Glassnode.

Looking at a broader perspective, Bitcoin was found to have steadily gained dominance over the past few years, growing from 38.9% to 49.8% since the FTX Collapse in November 2022.

In contrast, Ethereum has maintained its market cap dominance within the range of 18.9% to 18.2%. The decline in market share is notable among altcoins, dropping from 28.3% to 24.2%, while stablecoins also saw a reduction from 13.9% to 7.8%.

Ethereum’s Unexpected Rebound

Following the approval of the Bitcoin ETFs, several entities have either submitted applications or indicated a willingness to support the introduction of spot Ethereum ETFs. Securing approval for such a fund might present more challenges, as the SEC could view the leading altcoin more as an investment contract. The market sentiment, however, seems positive.

The prices of Ethereum have surged by over 20% compared to BTC in recent weeks, marking the most significant performance on a quarterly, monthly, and weekly basis since late 2022. This corresponds with a modest rebound in both the asset’s market cap dominance as well as the overall dominance of altcoins. Ethereum has gained 2.9% in market cap dominance compared to Bitcoin.

Simultaneously, there has been a notable increase in the volume of net profits secured by Ethereum investors, reaching a new multi-year high. While profit-taking has been on the rise since mid-October, the peak on January 13 surpassed $900 million per day, indicating investors capitalizing on the momentum created by the ‘sell-the-news’ scenario.

Glassnode observed a growing sense of optimism in the ETH market but also highlighted a potential point where markets typically pause to digest the distribution pressure from profit-taking. Historically, such shifts in sentiment among short-term holders have coincided with local peaks during a broader upward trend.

“ETH investors have recorded a multi-year high in net realized profits, suggesting there is some willingness to sell-the-speculation on a potential ETH ETF capital rotation.”

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Ethereum

Arthur Hayes Says Cardano Is A ‘Shitcoin’ – Here’s Why

Cardano (ADA) is a “shitcoin” without purpose that has no distinct advantage over competitors, according to BitMEX co-founder Arthur Hayes.

“Who gives a fuck? Zero?” said Hayes when asked “What about Cardano?” in an interview with Coin Bureau published on Sunday.

Cardano Is A Shitcoin, Says Hayes

Continuing to describe the cryptocurrency – a top ten digital asset by market cap – Hayes did not mince words: “The first wannabe Ethereum, and probably the first one to go to be irrelevant,” he said.

Typically, the popular crypto essayist and trader is well known as one of the loudest long-term Bitcoin (BTC) and Ethereum (ETH) bulls, and often expresses interest in small-cap cryptos for short-term trading.

During the same interview, Hayes even expressed interest in the memecoin “dogwifhat” calling it the “best dog money of this bull cycle.

“I love Rare Pepe’s… I think we’re going to see a resurgence of NFT trading volumes,” he added.

The writer’s unique callout of Cardano ruffled some feathers online – especially with the network’s founder, Charles Hoskinson. On Tuesday, Hoskinson asked Hayes why he was “throwing shade” at Cardano.

“Cause your coin is a piece of shit man,” Hayes replied. “Just buy some ETH and chill.”

What Makes Cardano Unique?

Much like Ethereum, Cardano is a smart contract platform for developing decentralized applications. It also popularized as one of the first well-developed proof-of-stake cryptocurrencies, which use crypto rather than energy to secure its network.

However, many popular blockchains today now use the same mechanism, with Ethereum undergoing a massive upgrade in 2022 to adopt proof of stake. In terms of both market size and DeFi TVL, Cardano is still outsized by competitors like Ethereum, Solana, and Binance Smart Chain (BSC).

On Tuesday, Hayes published a list of the world’s most popular Dapps, and asked which of them had originated or grown most popular on the Cardano blockchain.

“From my very limited knowledge, it looks like none of them do,” he said. “That’s why ADA is dog shit.”

On Bitcoin, however, Hayes remains a bull, expecting strong money printing from the Federal Reserve to drive the asset’s price up soon.

“When printing money happens and you debase the value of time and human labor, we rejoice and say great, fuck you, we’re gonna take Bitcoin to a million,” he told Coin Bureau.

Late last year, Hayes predicted that Bitcoin would reach between $750,000 and $1 million by the end of 2026.

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Crypto Markets Experience Minor Setback as Major Coins Dip, While Select Tokens Buck the Trend

On Wednesday, the crypto market experienced a modest downturn, with a 1% decrease in its overall value across the board, as bitcoin and ethereum saw declines of 0.51% and 0.45%, respectively. Bitcoin momentarily reached the $53,000 mark the day prior, while ether soared past the $3,000 threshold on Tuesday…
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Ethereum

Ethereum Technical Analysis: ETH Highlights Resilience Across Several Timeframes

Ethereum started Monday with its price hitting $2,934 per unit, marking a week filled with a strong 14.9% increase. Over the preceding fortnight, the second-leading crypto asset by market cap witnessed a substantial 25.9% upswing. Kicking off this week, ether’s trading volume over the past 24 hours has hovered around $24.74 billion…
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