Will Bitcoin be overtaken by Ether in the long run?

Leading cryptocurrencies Bitcoin and Ether started this week on higher ground as optimistic investors rushed back into the market.

  • Bitcoin (BTC) topped US$50,000 for the first time since May
  • Ether (ETH) soars 2.9% to cross US$3,300 as bullish sentiment lingers
  • PayPal has launched crypto buying and selling in the UK
  • Some analysts predict Ethereum may beat Bitcoin’s market cap
  • Interested in trading BTC or ETH? Open an account with us to get started.

Will Bitcoin price maintain its run-up?

On Monday in Asia, Bitcoin jumped above the closely watched US$50,000 level for the first time in three months.

As of 20:35 SGT, it was trading at US$50,329.50, up 2.7% from the previous day.

Investors were piling back into the world’s largest virtual coin amid bargain-buying, AFP noted. This also came as the cryptocurrency market continued to recover from a disorderly rout in May, Bloomberg reported.

BTC had hit US$50,249.15 on Monday morning in Singapore. That is its highest since mid-May, when the price had started to decline as China’s crackdown on cryptocurrencies and Tesla CEO Elon Musk’s decision to stop accepting Bitcoin had soured the mood.

However, since then, Tesla and other high-profile investors including Twitter founder Jack Dorsey have indicated their support for or interest in Bitcoin.

Bitcoin’s rebound since its six-month lows in June has revived speculation that it could approach US$100,000 in the long run, AFP reported.

Other observers predicted the asset could hover within a wider trading range. Bensignor Investment Strategies’ CEO Rick Bensignor on Monday wrote BTC was ‘getting nearer the higher end of what I expect as a new trading range in the low-US$40,000s to low US$50,000s’.

A Coindesk report highlighted ‘some signs of short-term fatigue’ amid the price rebound, anticipating Bitcoin may post ‘a small retracement down to lower prices’ before the bullish trend continues.

Ethereum price on uptrend

Ether, the coin linked to the ethereum blockchain network, likewise advanced on Monday.

ETH was last trading 2.9% higher at US$3,342.57 as of 20:35 SGT.

Tradable Patterns’ research team on Sunday wrote that ETH ‘has taken a bit of a backseat’ to other cryptocurrencies since early August, likely due to a rotation into other leading altcoins.

Analytics firm CryptoQuant’s CEO Ki Young Ju predicted that Ether’s intensifying ‘sell-side liquidity crisis’ may drive it to fresh highs and help it surpass BTC.

Bloomberg Intelligence likewise said it foresees Ethereum potentially overtaking Bitcoin by market cap to grab the top spot in the crypto scene, ‘even if it takes years rather than months at current trajectories’.

What’s your view on BTC and ETH? Take your positions today

CFD trading is a way of speculating on financial markets that doesn’t require the buying and selling of any underlying assets.

Opening an account with IG is free and simple. You'll get access to eight cryptocurrency markets, and you don't have to fund or trade until you're ready.

Otherwise, you can also open a demo account with us, where you will receive S$200,000 worth of virtual funds upon joining.

PayPal allows crypto purchases in Britain

Also boosting sentiment was PayPal Holdings’ announcement that starting this week, its UK-based customers will be able to buy, sell and hold Bitcoin, Ether and other cryptocurrencies.

This is the California-based group’s first expansion of its crypto services outside of the US, and could prompt further mainstream adoption of the new asset class, Reuters said.

Earlier this year, PayPal had allowed crypto buying and selling in the US, before letting shoppers use their digital coins to pay for orders from millions of merchants.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.