Bitcoin Outpaces Ethereum in 2024, But Analysts Predict Altcoin Rotation Ahead
Bitcoin Outpaces Ethereum in 2024, But Analysts Predict Altcoin Rotation Ahead
26 Jun
26Jun
Over the past year, Bitcoin (BTC) has surged by 74%, while Ethereum (ETH) has declined 28%, creating a significant performance gap between the two leading cryptocurrencies. Bitcoin’s outperformance began in mid-2024 and has steadily widened since. However, analysts warn that Bitcoin’s dominance may be overstretched, with Ethereum currently undervalued and under-owned. This setup suggests a potential rotation of capital from Bitcoin into altcoins, particularly Ethereum, as investors seek to rebalance portfolios. The data shows Ethereum trading near multi-month lows, increasing the likelihood of a rebound. Historically, large divergences between BTC and ETH performance tend to correct as investor interest shifts back to alternative Layer 1 assets, especially when macroeconomic conditions support risk-on sentiment. With market positioning heavily favoring Bitcoin, many expect Ethereum to narrow the gap in the coming months, possibly signaling the start of a fresh altcoin rotation cycle. Investors should watch closely for signs of this shift as it could present new opportunities in the crypto market.