Why Bitcoin and Ethereum are cheap

Ethereum ETFs have been boring since their start, because their trading volume and their net inflows were manageable compared to the Bitcoin ETFs. But the game has changed since November 22nd. The focus of the US investors is apparently no longer exclusively on Bitcoin. In the last eleven trading days, the Ethereum ETFs have recorded almost $ 1.4 billion in net inflows.

Correlation to Bitcoin is very tight. Since November 22nd, the bulls on the $ 100,000 mark have been nibbling, which is still competitive. One could interpret the situation in such a way that many investors have started to diversify. Apparently they trust Ethereum because Bitcoin has achieved a six -digit course. In fact, Ethereum still remains below his all -time high from 2021, which raises the question of whether the Ethereum course in Bitcoin's pull could soon go into the pricing phase.

The answer to this is not easy, because just like with Bitcoin, the question arises whether there is enough buyers. So far, Bitcoin has been worn by the ETF demand and the massive acquisitions of Microstrategy. At the same time, the Bitcoin miners sell BTC at these courses, which is only reasonable. Your business model is risky, and the high phases are the only moments when you can really cash in to expand your business and be prepared for the next doldrum.

Is that the beginning or end of the cycle?

The beginning of the bullish phase in December 2020 seems to have been very structured as the current market situation. Bitcoin scratched the $ 20,000 mark at the time and thus at the high of 2017. At the turn of the year, the bang came and the whole market went up steeply. However, there is a significant difference to this situation: Bitcoin has long exceeded this from 2021. You are in the pricing phase, and the real question is: Who is ready for everything in the world to put $ 100,000 on the table to have 1 BTC?

The hard core of the Bitcoin scene will not sell-or at least only the profits you need. “Need” can be meant luxury, but also the tax that you have to pay for short -term profits in the coming year.

In view of these findings and no reasonable answer to the question of whether $ 100,000 are a fair value, the market is undecided. The monthly candle for December 2024 reflects this indecision. For a little more certainty, it is worth considering the situation from the perspective of an ETF buyer.

Bitcoin and Ethereum ETFs are “cheap”

While many interested parties see high crypto courses in the headlines, the situation for the ETFs looks anything but overstretched. The Bitcoin ETF from Blackrock (IBIT) noted at $ 57.80 at the time of trading this week. The Ishares Ethereum Trust ETF (ETHA), also from Blackrock, $ 30.77. An ETF buyer does not see more, and these interested parties are currently bearing the market.

At first glance, it may sound crazy, but it is precisely these numbers that have a high impact on buying decisions. If Bitcoin continues to rise, the ETF shares still look very affordable, although you may be in a course range in which you could easily afford a house or at least a condominium per BTC. The same naturally also applies to the Ethereum ETFs.

The market is no longer primarily driven by buyers who have their wallet at the end and want to buy and hold coins. The new generation of ETF investors sees only the dollar value. It does not believe in a salvation effect better, a defi revolution by smart contracts or any other narrative that has originated from the marketing departments of various venture capital companies.

This fact should give investigators to think. If it pulls the courses down, then it has to be shown whether the ETF buyers understand this as a purchase opportunity or turn to other investments. In the summer of 2024 the Bitcoin ETFs provided In a phase of uncertainty for stability. So there is a first benchmark in this regard.

Conversely, it is almost guaranteed that this new caste will become euphoric among the crypto speculators if the courses continue to attract. In their dashboards you see percentage profits and a price that is far below what 1 BTC or 1 ETH currently costs.