Ethereum’s underperformance compared to Bitcoin is evident in deeper drawdowns and subdued capital inflows. Bitcoin’s resilience post-halving contrasts with Ethereum’s struggles to maintain momentum. Investor positioning metrics like Net Unrealized Profit/Loss (NUPL) highlight widening gaps between Bitcoin and Ethereum holders.
Bitcoin’s fourth halving followed historical patterns by initially triggering an 11% sell-off, but subsequent choppy sideways movement and slight downward pressure stabilized. This contrasts with Ethereum’s deeper drawdowns of -44%, reflecting its relative weakness in performance.
While Bitcoin investors experience greater expansion in unrealized profits, particularly before euphoric phases, Ethereum’s subdued capital rotation limits its appeal. Long-term Bitcoin holders often engage in profit-taking during high prices, while Ethereum investors show patience, holding for potentially higher gains. This divergence in behavior underscores differing sentiments toward the two assets and illustrates the challenges Ethereum faces compared to Bitcoin.
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