Ethereum is the leading altcoin based on the market cap. It is a general assumption that whenever Ethereum price goes up, the prices of most of the other altcoins will also go up. CryptoCapo, a well-known trader has shared an insight that the crypto market is actually led by Ethereum price instead of Bitcoin.
It is a general agreement that in the cryptosphere, Bitcoin is the leader and it increases rapidly when the bull comes and decreases very slowly when the bear comes. It is assumed that the BTC price generally guides the rest of the market. However, CryptoCapo’s insight has certainly made some waves in the market. The trader believes that ETH price and the market cap are related directly.
Ethereum price vs Market Cap: A comparison
A comparison was done with the ETH/BTC vs the market capitalization. In this study, whenever the Ethereum price was said to be increasing, it meant that ETH is growing at a faster rate than that of BTC.
In the tweet by CryptoCapo, it can be clearly seen that since June 2019, the market cap has followed ETH price. Whenever the price has gone up, the market cap has gone up and vice-versa.
Is ETH more profitable than BTC?
However, the comparison in the tweet has led to a new misconception that ETH is more profitable than BTC. No one has said that and it simply can’t be predicted. Although, when the market is in favor, one can long ETH instead of BTC and when the market goes down, shorting ETH will be the best idea, as told by CryptoCapo. When the market cap goes down, the price of ETH goes down slower than that of BTC.
The data which is obtained is for approximately 310 days but if the pattern continues for the major part of this year, it might just change the common opinion that BTC holds the strings of the market cap.