"Bitcoin goes, Ethereum rises"...Virtual asset market, major capital shift

▲ Bitcoin (BTC), Ethereum (ETH)

The capital flow in the virtual asset market has sharply shifted from Bitcoin (BTC) to Ethereum (ETH), initiating a fundamental restructuring of the market.

According to crypto media outlet NewsBTC on April 11 (local time), market participants last month were analyzed to have undertaken a structural capital reallocation rather than simple price fluctuations. While Bitcoin rose by 1.83% during March, Ethereum recorded a return of 7.12%. As Bitcoin's market capitalization decreased by 0.43%, Ethereum's market capitalization expanded by 2.97%, demonstrating a substantial shift of funds from Bitcoin to Ethereum.

Market volatility indicators also support Ethereum's dominance. Ethereum's realized volatility reached 62.8%, surpassing Bitcoin's 49.8%, proving it to be an asset more sensitive to liquidity changes. Although the correlation between the two assets is as high as 0.94, Ethereum is expanding its price fluctuation range further according to the market's risk appetite. Investors are rebalancing their portfolios towards Ethereum, expecting higher returns.

On-chain data shows a deepening supply shortage for Ethereum. A large outflow of Ethereum from exchanges to external wallets has significantly reduced the amount available for immediate sale in the market. The main reason for the reduced supply is not a sudden influx of buyers, but rather sellers withdrawing their sell orders and opting for long-term holding. Investors have begun to trust Ethereum not as a short-term trading asset, but as a long-term store of value.

The emergence of institutional products, such as BlackRock's Staking Ethereum Spot ETF, has served as a catalyst for this capital movement. This product offers approximately 3% staking yield, showcasing a differentiated investment value compared to Bitcoin spot ETFs. Institutional investors are fundamentally changing their asset allocation strategies, focusing on the additional earning opportunities provided by Ethereum rather than Bitcoin's stability.

Currently, Ethereum is trading around $2,200, reaching a critical turning point for price recovery. From a technical perspective, $2,200 has transitioned from a resistance level to a support level, and the market has entered the initial accumulation phase, a stage of collection. To enter a full-fledged uptrend, it needs to break through the $2,400 to $2,600 range, where the 100-day moving average is located. Future liquidity inflows are expected to accelerate Ethereum's price discovery phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*