• The cryptocurrency market started 2023 with positive momentum, leading to a rally in all major cryptocurrencies against the US dollar.
• Bitcoin is the clear leader, but Ethereum has been lagging behind the rest of the market since 2022.
• With the US Federal Reserve announcing its interest rate decision on Wednesday, there may be an opportunity to bet on Ethereum’s rally against Bitcoin and other cryptocurrencies.
Cryptocurrency Market Positive Momentum
The cryptocurrency market started 2023 with positive momentum. As a result, all leading cryptocurrencies gained against the US dollar, and the so-called „crypto winter“ from 2022 vanished.
Bitcoin Leads The Pack
Bitcoin is clearly the leader. It bounced strongly from the 2022 lows after losing about -65% of its value. The direct correlation between Bitcoin and the rest of the cryptocurrency market is well known, but something interesting has happened since the start of 2022. More precisely, the correlation weakened. Sure enough, other cryptocurrencies follow when Bitcoin enters a bullish or bearish market. Only this time,the extent is different.
Ethereum Lags Behind
The chart above shows that Ethereum has been lagging behind other major cryptocurrencies like Dogecoin and Ripple since January 2021. Despite rallying alongside them in early 2021, it lost over -70% of its value before bouncing back recently. This means that if one believes that cryptos will continue to gain against USD, then Ethereum might have more room to rally than others in this pack.
Federal Reserve Announcement
On Wednesday 30th January 2021,the Federal Reserve of United States will announce their first interest rate decision for 2023 followed by a press conference which could cause extreme volatility in USD which could create an opportunity for investors to bet on Ethereum’s rally against Bitcoin and other cryptos as it has more room to increase compared to them at present time due to lagging behind before recent bounce back..
It appears that while Bitcoin remains king amongst all crypto currencies in terms of price action ,Ethereum seems to be lagging somewhat as it lost more heavily than other cryptos during crypto winter last year . However ,with US Federal Reserve announcement coming up this week ,it may offer an opportunity for investors & traders alike who believe that cryptos will continue gaining strength against USD can consider investing & trading Ethereum at this moment as it seems have room for growth compared to most other top tier crypto currency .