On-chain analytics firm Glassnode has released a new report detailing the mixed performance of Bitcoin and Ethereum over the 2023-2024 cycle. This report highlights Bitcoin's resilience and Ethereum's relative lag in speculative pricing and price action.
Glassnode says Bitcoin's resilience after halving contrasts with Ethereum's struggles
Researchers at Glassnode found a significant difference in the performance of Bitcoin (BTC) and Ethereum (ETH), with Bitcoin being more resilient. “Ethereum’s weak performance this cycle compared to Bitcoin is reflected in a notable lag in speculative interest from the pool of short-term holders,” Glassnode Onchain said in its latest report. This difference is due to the fact that Ether's capital turnover tends to be weaker compared to previous cycles.
The report also shows that Bitcoin's decline in the fourth quarter initially led to a sell-off, with the price dropping to $57,000 before recovering. “Bitcoin price corrected -20.3% (from its all-time high of $73,000), the most severe correction since the FTX crash in November 2022,” Glassnod said. In contrast, Ethereum saw a similar decline, but its maximum withdrawal limit was twice as strict as Bitcoin.
Glassnode researchers highlighted that despite the initial decline, both Bitcoin and Ethereum are showing signs of recovery. However, Ethereum's price performance still lags behind Bitcoin. The researchers note that "Ethereum continues to be held, especially in blocks between one and three years old," and ETH's current poor performance suggests that experienced holders should take a wait-and-see approach. It is suggested that you take.
Investor behavior on the two assets was also different. Bitcoin’s net unrealized gain and loss (NUPL) rate hit its euphoria three months earlier than Ethereum, reflecting the rapid increase in unrealized gains for Bitcoin holders. According to Glassnode's analysis, the difference in performance and investor sentiment is likely influenced by the approval of Bitcoin exchange-traded funds (ETFs), which have not yet been reflected in Ethereum.