Coin Bureau Looks Into ETH Flipping BTC And What Factors Could Enable It
Coin Bureau estimates that flippening, or Ethereum (ETH) exceeding the market cap of the current number one crypto asset Bitcoin (BTC) could happen this year.
In a recent video update, Coin Bureau host and crypto analyst, known as Guy, shares with the crypto YouTube channel’s 1.91 million subscribers that there are two factors that could determine whether the flippening will happen fairly soon.
“In terms of when we could see ETH flip BTC, it’s possible that it could happen sooner rather than later. This really depends on the two factors I mentioned earlier. Namely: the approval of a spot Bitcoin ETF (exchange-traded fund) and Ethereum’s merge from proof-of-work to proof-of-stake…
These two events could very well happen within the same month. The few pending spot Bitcoin ETF applications could be approved by March and Ethereum’s merge doesn’t look too far behind. If a spot Bitcoin ETF is approved, then it will likely be impossible for ETH to catch BTC even if The merge is a great success.
If the merge occurs before a spot Bitcoin ETF is approved, it could be enough for Ethereum to flip Bitcoin, at least temporarily. The only caveat here is that we could enter a bear market when the Federal Reserve starts to raise interest rates… If the bear market is in full swing by the time The Merge comes around, it probably won’t be enough for Ethereum to flip Bitcoin because the market momentum won’t be there. Conversely, it’s hard to envision a bear market where a spot Bitcoin ETF is approved, which logically means that ETH is unlikely to flip BTC in the short term.”
Guy also discusses what would it mean if ETH would overtake BTC as the largest crypto asset.
“Bitcoin and Ethereum are fundamentally different. BTC is digital gold and ETH is digital oil. If the market cap of crude oil flipped the market cap of physical gold or vice versa, it wouldn’t matter for either asset, so why should it matter when the oil and gold in question are digital? From where I’m standing, both cryptocurrencies face unique challenges to grow, but both will ultimately prevail in their respective niches.”
