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A Major Bitcoin Competitor Just Had One Of Its Best Days Ever

Data sources: Coinmetrics.io, Bitfinex, TradingViewDelphi DigitalFor many crypto asset speculators, Ethereum has long been regarded as the one Bitcoin (BTC) competitor that actually merits any attention. Ethereum is a project focused on more complex smart contracts rather than security through simplicity, and the network’s underlying token, known as Ether (ETH), recently had one of its best days ever relative to the Bitcoin price.Ether’s more than 10% rise versus the BTC price on Tuesday was covered in digital asset research firm Delphi Digital’s latest weekly report, which covers Bitcoin and greater cryptocurrency market. In the report, it is noted that Ether’s recent price run does not necesarily mean that altcoins more generally are finally about to experience a turnaround in terms of their BTC-denominated prices. 2018 and 2019 have been the two worst years on record for the prices of the most popular and longest running Bitcoin competitors.Bitcoin’s Digital Gold NarrativeAccording to the new report from Delphi Digital, Bitcoin has performed much better than nearly all other crypto assets in 2019 due to the “digital gold” narrative. All of the major altcoins are down heavily against Bitcoin this year, although there are some exceptions such as Binance Coin (BNB) and Chainlink (LINK). LINK gained attention earlier this year when it surpassed 800% gains against the US dollar on a year-to-date basis, although the Ethereum-based token has since come back down to reality.Global economic events, such as the devaluation of the Chinese yuan and the potential devaluations of many other major fiat currencies around the world, have sparked renewed interest in Bitcoin this year as a decentralized, apolitical alternative to traditional financial assets. These macroeconomic trends have led to various bullish Bitcoin price predictions ranging from $42,000 by the end of 2019 to $100,000 by the end of 2021.At the same time, U.S. lawmakers are realizing they won’t be able to implement a Bitcoin ban.Ethereum’s TurnaroundAs the Bitcoin price has risen in 2019, so too has the price of Ether. However, the native token of Ethereum has not kept pace with Bitcoin.”Unsurprisingly, ETH has also underperformed bitcoin by a significant margin this year, gaining just over 50% versus BTC’s 170% year-to-date return (in USD terms),” notes the report from Delphi Digital.Although there was once a somewhat prevalent belief that Ether could overtake Bitcoin as the world’s most valuable cryptocurrency, the altcoin was down 85% against Bitcoin since the peak of that “flippening” hype as of late July. The ETH price eventually dropped to levels not seen since March 2017 earlier this month, but the altcoin is up 25% against Bitcoin since a bottoming out on September 7th, according to Coin Metrics.According to a graphic in the recent Delphi Digital report, ETH enjoyed its largest 24-hour gain against BTC since late 2018 on Tuesday.”However, it is still far too early to tell whether ETH’s jump this week is the start of a fresh trend or just another short-term rebound,” adds the report. “The daily MACD line for ETHBTC has crossed into positive territory following its bullish crossover last week, though history cautions us this may prove to be short-lived. The 14-day RSI also broke above 70 for the first time since February, but similar to other key indicators we need to see further strength before getting too excited.”
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