The two heavyweights in the crypto world have been battling it out the last few months and what is taking place is a fascinating “battle”.
Bitcoin, the heavyweight champ of crypto, still dominates with a $2.23 trillion market cap - more than half the entire digital asset space. But even the king isn’t immune to selling pressure. After hitting an all-time high of over $124,000 in mid-August, Bitcoin slid back below $110,000, a drop of nearly 12%. Today it has rallied back to $111,000.
Statistically speaking, it’s now one of the most oversold stretches we’ve seen in years - trading 2.8 standard deviations below its 50-day moving average. That’s rare. In fact, the only time we’ve seen Bitcoin this weak compared to Ethereum was May 2021. And what happened after that? Bitcoin staged a monster rebound.
Ethereum, on the other hand, is holding up far better. At just over $535 billion in market cap, it’s only a quarter the size of Bitcoin, yet it’s showing relative strength. While it’s down from last week’s highs, it remains above key moving averages - a sign that investors aren’t bailing out nearly as quickly as they are with Bitcoin.
Even more interesting is when the action is happening. Ethereum’s gains this month have mostly come during U.S. stock market hours, while Bitcoin has been hit hardest in the early morning and right before the open. Both tend to bounce mid-day, but then sellers return in the final hour of U.S. trading.
Why the pattern? Institutions. Since Bitcoin ETFs launched nearly two years ago, the intraday rhythm of crypto has shifted. Big money tends to sell late in the day, and that’s weighing heavily on Bitcoin.
For long-term investors, this is just noise. But for traders, the clock matters - and Ethereum is showing the kind of relative strength we like to see during uncertain times.
But let me be clear: short-term trading patterns don’t change my long-term outlook one bit. I remain extremely bullish on both Bitcoin and Ethereum over the next decade. Bitcoin is digital gold - a scarce, decentralized store of value with adoption spreading from Wall Street institutions to governments. Its supply is fixed, demand keeps growing, and history tells us that every major pullback has been followed by a new leg higher.
Ethereum plays a different role. It’s the backbone of decentralized finance, smart contracts, and Web3 applications. From tokenization of assets to the future of digital ownership, Ethereum is building the infrastructure for the next generation of the internet. While Bitcoin will continue to be the “reserve asset” of the crypto world, Ethereum could power the applications that billions of people actually use.
So yes, volatility will always be part of the crypto journey. But investors who can look past the daily noise and focus on the bigger picture are positioning themselves for what I believe could be another massive wave of wealth creation.
Here’s to the future,
Matt McCall
Editor, Market Insights
