In Q2, Bitcoin dropped 42.11% from its closing level at the end of March 2021. Ethereum rallied 16.60% up over the same timeframe
DUring the first six months of 2021, Bitcoin was still 20.09% higher than its closing price at the end of 2020. Ethereum trended up 205.19% over the same period. Ethereum has been the star of the top two cryptocurrencies in 2021 as the market has chosen to support the crypto with the second-leading market cap.
Ethereum was up over H1 2021, soaring ten times higher than Bitcoin on percentage basis
As Ethereum moved over ten times higher than Bitcoin on a percentage basis over the first six months of 2021, the market has sent a powerful message.
In markets across all asset classes, analysts and pundits try to explain why one market outperforms or underperforms another. However, the most significant factor is, that it does.
Sentiment or herd behavior is the most critical factor when explaining an asset’s performance. Nonetheless, at the end of the day, the explanations are meaningless. All that matters is price action.
The asset’s chart is the single compelling factor; the analysis is secondary. The research becomes stale while price action is a living, breathing, real-time snapshot of sentiment.
Prices move higher when buyers are more aggressive than sellers and vice versa. The price action in Bitcoin and Ethereum over the first half of 2021 validates the market’s pivot towards the latter.