in a tweet On August 18, Ki Young Ju, CEO of the on-chain analytics service CryptoQuant, emphasized the “seller liquidity crisis”, which may give ETH an advantage over BTC.
Ethereum liquidity shortage “intensifies”
As Bitcoin has risen by more than 50% from the low of $29,000, altcoins have also begun to recover, and Ethereum is no exception.
The largest altcoin has recovered $3,000, and this level is being retested as support this week.
Although attention is focused on Bitcoin 50,000 USD recoveredAfter the successful deployment of the London hard fork earlier this month, optimism for Ethereum remains high.
Partly due to supply changes driven by the hard fork, before BTC/USD manages to do the same thing, a liquidity shortage may eventually push ETH/USD to a new historical peak.
“In the long run, ETH may reach all-time highs earlier than BTC,” Ki concluded.
“Compared with BTC, the current price of ETH is closer to ATH. Demand has increased and supply has decreased. The liquidity crisis of ETH sellers is still intensifying, and BTC foreign exchange reserves stopped their downward trend in May.”
In terms of numbers, Bitcoin foreign exchange reserves began to decline in May, but only recovered in late July. From the peak of 2.54 million on July 26, BTC reserves subsequently dropped to 2.44 million this week.
In contrast, since the local high of 21.43 million held by exchanges in late May, ETH has shown an almost linear downward trend. As of this week, the exchange balance is approximately 19.25 million.
Supply shock battle
Ki is not the only one who predicts that the Ethereum bull market will be more rampant than Bitcoin.
As Cointelegraph Report, Bloomberg Intelligence also indicated in a recent report that it supports ETH instead of BTC, and even predicts that the largest cryptocurrency will “flip”.
At the same time, data continue to show that Bitcoin’s supply shock is also taking place, which has historical precedents that have caused the price of BTC to rise.
“The illiquid supply shock rate has been a good leading indicator in the past few months,” analyst William Clement Comment The latest data from the analysis resource Glassnode on the peer chain.
“The impulse in both directions led to the subsequent price movement. As the indicator continues to rise slowly, it is currently at the previous level. 58K BTC, waiting for another major driving force.”
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