Bitcoin Dominance Jumps >50%, Ether longer 'ultrasound' 💥

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👇 1) Bitcoin price is 27,585 above the 50d MA 26,575 -> this is bullish, price WoW increased by 0.2%; Ethereum price is 1,579 below the 50d MA 1,636 -> this is bearish, price WoW increased by -5.1%. Ethereum currently underperforms Bitcoin as the trend (20d) MA shows ETH / BTC ratio is going down, crypto is driven by beta factors, this is negative, stay cautious.

👇 2) Bitcoin dominance has climbed above 50%, the highest level since April 2021. At the Ethereum Merge on September 15, 2022, Bitcoin’s dominance stood at 39.4%, while Ethereum’s dominance stood at 18.4%. While Ethereum lost dominance and now accounts for 17.7% of the crypto ecosystem, Bitcoin stands firm at 50.3%.

👇 3) Ether prices have also fallen below the critical technical level of 1,600 (last 1,580). With weak fundamentals, we could see prices drop materially lower, especially as we do not hear any news about the EIP-4844 upgrade that might be so crucial in the future. These are the essential points we have highlighted in the past and made us cautious on Ether while we are bullish on Bitcoin.

👇 4) The launch of last week’s Ether ETFs based on futures had a brief positive impact on Ether, and prices appeared to break out but, as we expected, the market is not interested in those ETFs as the monthly roll- and operational costs make them an underperforming proxy of actual Ether prices. For example, the Bitcoin ETF based on futures is underperforming Bitcoin spot by 20% this year!

👇 5) Ethereum is also no longer ‘ultrasound’ money as the issuance (68k Ether) is much higher than the burn (38k) over the last 30 days. Ethereum has become inflationary. Still, this is only an annual inflation rate of 0.3% vs. Bitcoin’s inflation rate of 1.6%, while the real economy shows an inflation of 3.7%.

👇 6) Ethereum is no longer the crypto ecosystem that generates the most ‘fees’. Instead, during the last 30 days, Tron generated $87.4m in fees and paid token incentives of $65.8m, earning a net $21.6m. Compare this to Ethereum, which generated $82.2m in fees with $82.9m in token incentives and $-20.6m in earnings. Lido Finance yielded $46.9m in fees, friend-tech $30m, Bitcoin $27m, Uniswap $23m, Aave $8.8m and BNB Chain $8m.

👇 7) Similar to the price of Ether, TVL dropped 3-5% across the board except JustLend, which increased by 0.2% during the last week. Lido’s TVL declined by -4.1%, Aave -3.4%, MakerDao -4.6%, and Uniswap -4.9%. TVL is the lowest since February 2021.

👇 8) The futures funding rate trades positive for Bitcoin (3.8%), which is bullish and the funding rate is positive for Ethereum (5.5%), which is bullish. Our Bitcoin Greed & Fear Index prints 69%, while the Ethereum Greed & Fear Index prints 22%. The RSI for Bitcoin is 56%, while the Ethereum RSI is at 40%

👇 9) Crypto market cap stands at 1.07trn, -1.8% than the week before, with avg. weekly volume of 27.7bn, -8% lower than the week before. The weekly Bitcoin volume was 11.7bn, 12% higher than the average. while Ethereum volume was 4.9bn, 2% higher than average.

👇 10) Tether’s USDT and Circle’s USDC supply increased each by $200m last week. Tether USDT market cap is 83.4bn, 0.1% higher than avg. while volume was 20.8bn, -14% lower than average. Lower volumes paint a different picture while the higher market cap is bullish. Binance avg. daily derivatives volume was 25.4bn, 6% higher than the average. With an market share of 46%, Binance avg. daily spot volume was 5bn, 13% higher than avg. with mkt share of 56%.