Popular crypto analyst Benjamin Cowen describes how Ethereum (ETH) therefore market capitalization leading crypto asset Bitcoin (BTC) could help to extend its dominance.
In a new video update, the trader describes how BTC’s dominance, i.e. Bitcoin’s overall share of the crypto market cap, has collapsed at the end of the year. 2020 from about 73% to 41.18% at the time of writing.
Cowen says that Ethereum’s imminent shift from a proof-of-work network to a proof-of-stake network could lead investors to reallocate their funds into the leading digital asset, suggesting that ETH’s appreciation is a “Sell-on-News” event could be.
“When will [BTC’s dominance level] turning back? When will it go the other way again? If I were just speculating, one of the things I would have to think about is what are the important events that could turn the tide and perhaps lead to various portfolio rebalancings.
I think one of the biggest events is obviously the merge for Ethereum. There’s certainly a lot of momentum behind it at the moment… and that will theoretically come in September, where it’s moving from proof-of-work to proof-of-stake…
I wouldn’t be too surprised if [Bitcoin’s] Dominance may reverse again in September if it isn’t already there by then and that’s because we’re getting back into this big event for Ethereum and it seems like a reasonable place for people to reallocate some of their portfolios .”
However, Cowen believes it is possible that the merger could be delayed, as has often been the case in recent years.
At the time of writing, Bitcoin is changing hands at $22,947, up 1.8% on the day, while ETH is trading for $1,689, up 5% over the past 24 hours.
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Source: Crypto News Deutsch