Here’s how Ethereum (ETH) could help Bitcoin (BTC) increase its dominance, according to top crypto analyst

Here’s how Ethereum (ETH) could help Bitcoin (BTC) increase its dominance, according to top crypto analyst
Here’s how Ethereum (ETH) could help Bitcoin (BTC) increase its dominance, according to top crypto analyst

Popular cryptoanalyst Benjamin Cowen outlines how Ethereum (ETH) could help top crypto asset by market capitalization Bitcoin (BTC) increase its level of dominance.

In a new video update, the trader details how BTC’s dominance level, or the total percentage of the crypto market capitalization made up of Bitcoin, flipped at the end of 2020 from approximately 73% to 41.18% at the time of writing.

Cowen says Ethereum’s upcoming transition from a proof-of-work network to a proof-of-stake could prompt investors to reallocate their funds to the leading digital asset, suggesting that ETH’s upgrade could be a sell-on-news event .

“Whenever [BTC’s dominance level] turn around? When will it go back the other way? If I were to just speculate, one of the things I have to think about is what are some big events coming up and at what point might the narrative change and maybe there might be different re-weightings of portfolios?

I think one of the biggest things is obviously the merger for Ethereum. There’s certainly a lot of momentum behind it right now… and it’s theoretically coming in September, where it goes from proof-of-work to proof-of-stake…

I wouldn’t be too surprised to see [Bitcoin’s] the dominance starts to turn around maybe in September if it hasn’t already by then, and the reason is because you’re again going into this big event for Ethereum, and it seems like a reasonable place where people can redistribute some of their portfolios.”

However, Cowen notes that it is possible that the merger could be delayed, as it has been many times before over the years.

See also  Bitcoin prices are slipping. Why Cryptos Can Have a Tough Week.

Bitcoin is changing hands at $22,947 at the time of writing, a gain of 1.8% on the day while ETH is moving at $1,689, up 5% in the last 24 hours.

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