Cryptocurrency Acquisition Intensifies: Metaplanet Purchases Extra 780 Bitcoin, While Sharplink Gaming Increases Ethereum Holdings by 77,210 coins
In the dynamic world of cryptocurrencies, the ongoing bull cycle has ignited a fierce competition between Bitcoin (BTC) and Ethereum (ETH) for market dominance. While Bitcoin held the lead in institutional accumulation during Q4 2021, Ethereum has been gaining ground, thanks to its unique supply dynamics and growing institutional interest.
Institutional Preferences in Q4 2021
Bitcoin, with its fixed supply of 21 million coins and its reputation as "digital gold," was the preferred institutional asset in Q4 2021. The high long-term holder concentration reflected strong institutional accumulation, as these investors viewed Bitcoin as a store of value[1].
Ethereum, on the other hand, began to attract increased institutional attention due to its deflationary supply dynamics, introduced by EIP-1559, which burns part of transaction fees, creating an adaptive supply model responsive to network demand[1]. The transition towards Ethereum's proof-of-stake consensus (the Merge) and the growth of DeFi and NFT sectors leveraging Ethereum’s network also contributed to this interest[1].
Bullish Price Predictions and Trends Following Q4 2021
Ethereum's price surged significantly after Q4 2021, reaching above $3,800[2]. Analysts have predicted Ethereum reaching $5,700-$7,300 and potentially breaking $4,000 resistance levels, citing technical bullish patterns, institutional buying, and supportive macroeconomic conditions such as crypto-friendly legislation and growth in risk-on assets[3][4].
Bitcoin remained a dominant institutionally favoured asset but faced competition from Ethereum’s flexible monetary policy and expanding ecosystem, which support a bullish outlook for ETH relative to BTC under certain market conditions[1][2].
The Current Landscape
The analyst suggests that Ethereum is slowly reaching for a new all-time high (ATH). Strong indicators, such as a massive bullish monthly candle, a fresh MACD crossover, a 3-year squeeze reaching its apex, and an ETH/BTC daily golden cross formation, support this prediction[3].
Notably, institutions are increasingly favouring Ethereum. For instance, Sharplink Gaming added 77,210 ETH worth $295 million to its holdings, bringing its total ETH holdings to 438,017 ETH worth $1.69 billion[5]. Similarly, Metaplanet, a firm that had been accumulating only BTC, recently bought 780 BTC worth $92 million, bringing its total holdings to 17,132 BTC[6].
On the other hand, institutions like BlackRock are accumulating both BTC and ETH, indicating a diversified approach to the crypto market[7]. However, some institutions, like Bit Digital, are focusing solely on Ethereum, while others like Strategy remain with Bitcoin[8].
Analysts predict that both BTC and ETH will reach new all-time high (ATH) prices in the near future[9]. Bitcoin's latest all-time high (ATH) is in the $123,000 price range[10]. The potential for BTC's long-term value to exceed $1 million and the strong indicators for hitting higher ATH prices for both BTC and ETH further underscore the bullish trend in the crypto market[11].
In conclusion, while Bitcoin retained its position as the flagship institutional crypto in Q4 2021, Ethereum's unique supply dynamics and increasing institutional adoption have fostered aggressive accumulation and bullish price predictions, forecasting substantial upside in the following years[1][3][4]. The analyst's outlook indicates a bullish trend for Ethereum in the crypto market.
Institutions are increasingly considering Ethereum as a viable alternative to Bitcoin due to its deflationary supply dynamics and expanding ecosystem, as evidenced by the growing institutional interest and accumulation in Q4 2021 [1]. As a result, analysts predict Ethereum reaching new all-time highs, potentially surpassing $5,700-$7,300 and breaking $4,000 resistance levels, thanks to the growing institutional interest, technical bullish patterns, and supportive macroeconomic conditions [3].
The bullish trends in cryptocurrency finance extend to both Bitcoin and Ethereum, with analysts predicting both coins to reach new all-time high prices in the near future [9]. While Bitcoin remains a dominant institutionally favored asset, Ethereum's flexible monetary policy and expanding ecosystem support a bullish outlook for ETH relative to BTC under certain market conditions [1][2].
