Bitcoin Reaches New Heights as Ethereum Faces Challenges

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Bitcoin (BTC) has surpassed $97,700, reaching a new record high, while Ethereum’s (ETH) value against Bitcoin has fallen to its lowest level in three years. According to Binance data, this ratio decreased by 1.54% to 0.032, representing a 40% loss since the beginning of the year. The surge in Bitcoin’s price has been amplified by the approval of spot Bitcoin ETFs in the U.S. and Donald Trump’s potential re-election, according to BTCMarkets expert Rachael Lucas, who stated that these factors could push Bitcoin’s price above $100,000 by the end of the year.

Challenges Facing Ethereum

Ethereum , the leading altcoin, struggles to capitalize on the ongoing market rally. This struggle is not surprising, as it also impacts other altcoins. While Bitcoin rose by 7% last week, Ethereum saw a decline of 3.2% during the same period.

The Block analyst Steven Zheng pointed out that Ethereum is contending both as a store of value against Bitcoin and as a smart contract platform against networks like Solana . Especially in meme coin projects, Solana (SOL) has outperformed Ethereum. Data shows that 94% of newly created token projects have launched on Solana, surpassing Ethereum in transaction volume. Lucas noted that Ethereum has lost momentum following The Merge update and has been negatively affected by regulatory uncertainties in the U.S.

Long-Term Recovery Potential for Ethereum and Altcoins

Experts believe that Ethereum has the potential for long-term recovery. Peter Chung from Presto Research mentioned that as more Web3 projects come to fruition, Ethereum could regain strength. Zheng highlighted that Ethereum remains the most economically active smart contract platform, suggesting that developers will continue to invigorate the network with new applications. Lucas added that a halt in Bitcoin’s rally or significant technological advancements by Ethereum could alter the market balance.

Such a recovery in Ethereum is significant as it could initiate the long-awaited altcoin rally. The Altcoin Season Index provided by Blockchaincenter currently stands at 33, indicating that the altcoin season has yet to begin.

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