The US presidential election is being counted today, and as Trump was initially leading Kamala Harris by a factor of 2 (around 11 am), the cryptocurrency market has already reacted with a big rally.
BTC daily gain equals the entire October gain
According to data from the Binance spot market, Bitcoin briefly touched $75,000, a new all-time high, with a single-day cumulative gain of 10.48%, equivalent to the entire month of October's gain (10.76%).
As of the time of writing, it is currently trading at $74,538, up 8.6% in the last 24 hours. The volatility is currently high, so investors should be cautious about the risks.
Driven by Bitcoin, the cryptocurrency market has seen a broad rally, with Doge in particular surging 27%. Among other L1 blockchains, SOL has performed outstandingly, rising 14.6%, surpassing Bitcoin's gain; however, Ethereum has only risen 6.3%, lagging behind Bitcoin.
ETH/BTC hits a new low
This has caused the ETH/BTC ratio to continue to hit new lows. According to TradingView data, the ETH/BTC ratio has fallen below 0.035, reaching a low of 0.03466, a new low since March 2021. At the time of writing, the ETH/BTC ratio is temporarily reported at 0.0348.
Trump can't save ETH reason
ETH's weak performance in this cycle has led the market to continue to question its future, mainly around the following two points:
- Lack of application advantages: Compared to infrastructure, the market in this cycle has focused more on specific applications, and the currently most prominent application narratives such as AI and payments are not the strengths of Ethereum, which has reduced its appeal.
- The prosperity of L2 cannot benefit Ethereum: Although the L2 ecosystem is developing rapidly, Ethereum cannot benefit from the prosperity of L2.
Against the backdrop of continued gains in other cryptocurrencies, if the Ethereum price remains below $3,000, it will further undermine its market position and confidence accumulated over the past 10 years, and capital will be more inclined to flow to other projects, forming a vicious cycle, making it difficult for Ethereum to break through.
In addition, after the Dencun upgrade, ETH has returned to inflation, and the listing of Ethereum spot ETFs has failed to attract market capital, these factors have greatly undermined investors' confidence in Ethereum.
Analysts are skeptical about the reversal of ETH/BTC
Regarding the continued decline in the ETH/BTC ratio, some investors are hoping for a rebound. However, market analyst Zach Voell believes that the currency pair "cannot be seen to reverse", and he stated:
Don't let the election distract you from the fact that ETH/BTC continues to plummet to new lows.
Crypto commentator Colin Talks Crypto said that ETH/BTC will fall further. He expects it to drop to the 0.025-0.03 level.
