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Popular cryptocurrency analyst Benjamin Cowen outlines how Ethereum (ETH) could help top crypto asset Bitcoin (BTC) increase its level of dominance.
In a new video modernizethe trader mentions how BTC’s level of dominance, or the total percentage of the cryptocurrency market capitalization made up of Bitcoin, declined in the end of 2020 from about 73% to 41.18% at the time of writing.
Cowen says Ethereum’s upcoming transition from a proof-of-work to a proof-of-stake network could force investors to reallocate their funds to the leading digital asset, suggesting that ETH’s upgrade could be a sell-off event in news.
“When will [BTC’s dominance level] come back? When will it go back to the other side? If I just wanted to speculate, one of the things I would have to think about is what are the major events coming up and at what point could the narrative change and maybe there be various rebalancing of portfolios?
I think one of the biggest things is obviously Merge for Ethereum. There’s certainly a lot of momentum behind it right now… and that’s theoretically coming in September where it goes from proof of work to proof of stake…
I wouldn’t be that surprised to see [Bitcoin’s] dominance starts to come back maybe in September, if it hasn’t already by then, and the reason is because you’re again in this major event for Ethereum and it seems like a logical place where people might reallocate some of their portfolios. »
However, Cowen notes that it’s possible the merger will be delayed, as it has been many times over the years.
Bitcoin is changing hands at $22,947 at the time of writing, a gain of 1.8% on the day, while ETH is trading at $1,689, up 5% in the last 24 hours.
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Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and that any losses are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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