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Based on year-to-date performance and pullback from their all-time highs (ATH), Bitcoin (BTC) and Ethereum (ETH) performed very similarly. While BTC is up 25.5% year-to-date, ETH is up around 27%. From its ATH, Bitcoin is down 69.9%, while Ether is down 68.9%.

Despite these very comparable performances, the debate persists that Ethereum could replace (“flip”) Bitcoin as the largest cryptocurrency by market capitalization in the next few years or in the next bull cycle.

A proponent of this theory is Haseeb Qureshi from Dragonfly Capital. In a recent interviewthe managing partner of the investment firm said that if any cryptocurrency was to reach $1 trillion, it would be Ethereum.

His reasoning? Institutional investors who need to align their purchases with their environmental, social and governance (ESG) program:

You need institutional buyers to be willing to buy this thing in size and Ethereum is really the only game in town if you are an institutional buyer.

Furthermore, the expert said that it is becoming increasingly difficult for institutions to justify Bitcoin as an investment.

“I see it a lot because we work a lot with big institutions […]. This is explicitly something that increasingly concerns them. They want to invest in crypto, but it has to be in line with their ESG mandate,” Qureshi said.

Another argument made by proponents of the theory is also that Ethereum is mostly OFAC (US Office of Foreign Assets Control) compliant, which could make it easier for institutions to enter the market.

On the other hand, Bitcoin proponents are likely to take issue with the fact that mining is one of the most sustainable industries of all. In its latest report, the Bitcoin Mining Council found that the energy mix in Bitcoin mining is now 58.9% sustainable.

Additionally, estimates suggest that Bitcoin mining can reduce global emissions by up to 8% by 2030, simply by converting the world’s wasted and dangerous methane emissions into emissions 80 times less harmful.

Here’s what Ethereum/Bitcoin technical analysis says

A look at the Ethereum/Bitcoin 4-hour chart shows that ETH currently remains in a downtrend against BTC. ETH saw a spike above and out of the pennant for the ETH/BTC ratio, followed by a return to support as Bitcoin fell from $18,000 to $21,000 in a matter of days, as Explain by the founder of LedgArt via Twitter.

According to the analyst, these types of faux locks degrade. He argued, “I still expect this level to drop over the next few weeks as BTC continues to strengthen, absorbing liquidity from alts similar to what happened during the bear market rally of 2019,” and shared the graphic below.

ethereum bitcoin
Ethereum/Bitcoin, 4 hour chart | Source: Twitter @CryptoKaleo

BTC is currently changing hands at $18,798, while ETH sits just above the $1,500 support level at $1,528.

Featured image from Kanchanara/Unsplash, graphic from Twitter/

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