The latest report from Coinbase Institutional indicates a good prognosis for the cryptographic market. Expectations for potential cuts in US interest rates and monetary stimuli will raise Bitcoin’s performance in the fourth quarter of 2024.
At this moment, Bitcoin is performing well, while Ethereum faces challenges with a lack of meaningful benefits from US spot ETFs and increased transaction fees.
Bullish Sentiment for Bitcoin vs. Skepticism Surrounding Ethereum
The report, “Takeaways from Token 2049,” published on Friday and co-authored by Head of Institutional Research David Duong and Institutional Research Analyst David Han, summarizes the key takeaways from the two events, Token2049 and Solana Breakpoint, held in Singapore.
Duong and Han are more optimistic about the market in the fourth quarter since the US rate cuts and strong fiscal and monetary stimulus could prop up market liquidity and help Bitcoin.
Bitcoin continues pushing towards channel high and it’s currently above our target level $64,000 – $65,000 level (yellow box)
Weekly and monthly close are coming and closing above this level would put out target to test of all time highs with very likely break out.
$TOTAL3 -… pic.twitter.com/L4wTTQw8KZ
— Crypto Cobrex (@CryptoCobrex) September 27, 2024
It forecasts a bright future for Bitcoin and other high-beta crypto assets in the coming months. Besides, the report does not discuss some drawbacks Ethereum has faced recently, such as increased transaction fees. “On-chain activity is growing with rising DEX volumes and higher Ethereum gas prices,” the report reads.
Ethereum’s Struggles Amid Spot ETH ETF Releases
Despite more recent releases of spot ETH ETFs in the United States, Ethereum has not benefited from this as Bitcoin has. Optimism and scepticism abound in the view held by market players, who have, by and large, been bullish toward Bitcoin but concerned about the potential of Ethereum vis-a-vis taking advantage of spot ETH ETFs launched over two months ago.
That starkly contrasts the excitement surrounding Bitcoin and alternative networks like Solana, which are rapidly expanding their ecosystems with new products and partnerships.
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Despite Ethereum’s performance, the general outlook on the cryptocurrency market seems great. These hopes are largely pegged to China’s huge fiscal and monetary stimulus and favourable U.S. economic conditions.
This is especially true for the layer-1 chain networks имениFetching Solana, for instance, increasingly challenges Ethereum’s dominance by attracting more focus on scalability and transaction efficiency. In essence, these booming DEXs and the furtherance of blockchain infrastructures portend a bright prospect for the crypto space in general.
Ethereum Suffers Despite Favorable Bitcoin Outlook
While Bitcoin is doing great, Ethereum struggles to gain momentum. According to one of the recent reports, Ethereum’s network faces increased transaction fees due to the surging on-chain activity and ever-growing demand for DEX services.
While Ethereum-based spot ETFs finally launched in the United States, the excitement never quite reached the fever pitch that it did for Bitcoin. Analysts say it is partly because of the concerns over the efficiency and scalability of the network that have persisted.
The report says, This pretty much shows a lack of enthusiasm for Ethereum, in stark contrast to the growing interest in younger blockchain networks like Solana, which continuously work on improving their ecosystems through new products and partnerships, offering faster and cheaper solutions than others.
Conclusion
However, the crypto market at large remains bullish. Solana and other layer-1 networks, coupled with a few decentralized ones, are finding their grounding as Ethereum killers due to solving scalability issues and transaction efficiency concerns.
Besides, with the emergence of DEXs and further development in blockchain infrastructure, it looked like a wave of innovation had swept through space. In conclusion, the cryptocurrency market is still very bullish for the end of the year, particularly regarding Bitcoin. At the same time, Ethereum needs to meet and overcome several challenges if it is ever to return to its leading position.
This report will underline Bitcoin’s promising future, supported by good macroeconomic conditions and fresh ideas inside the crypto ecosystem. Conversely, Ethereum’s extending problems of surging transaction fees and the limited benefits accruing from the introduction of spot ETFs expose its struggles due to the emergence of several layer-1 competitors, like Solana.
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