Ethereum May Outperform Bitcoin in January: Analyst Predicts Potential "Altcoin Run"

Ethereum’s relative strength to Bitcoin could see a significant boost in January 2025, potentially triggering an “altcoin run” in the Ethereum ecosystem, according to crypto analyst Michael van de Poppe. The ETH/BTC ratio is showing signs of breaking out, with van de Poppe suggesting that Ethereum could outperform Bitcoin in the coming month.
Ethereum's Relative Strength Gaining Momentum
As of December 24, Ethereum's relative strength against Bitcoin, represented by the ETH/BTC ratio, stands at 0.0356. Van de Poppe expressed in a post on X (formerly Twitter) that he "wouldn't be surprised" if the ratio breaks through the 0.04 level in January. The last time the ETH/BTC ratio reached 0.04 was on December 8, when Ethereum briefly traded above the $4,000 mark.
If Ethereum’s relative strength continues to rise, it could set off a wave of price appreciation for Ethereum-based altcoins, according to van de Poppe. He predicts that the growth in Ethereum's price could coincide with outflows from Bitcoin, potentially leading to a consolidation in Bitcoin's price. This, he believes, will fuel a broader “altcoin run” within the Ethereum ecosystem.
Ethereum Ecosystem Tokens Showing Strength
Some of Ethereum’s prominent tokens are already seeing positive price movements. For instance, Shiba Inu (SHIB) and Mantle (MNT), the second and third largest tokens in the Ethereum ecosystem outside of stablecoins, have gained 7.10% and 3.32%, respectively, in the past 24 hours. These gains indicate that Ethereum-based projects may be benefiting from the broader shift in market sentiment.
Bitcoin’s Performance vs. Ethereum
While Bitcoin has had a strong year, trading just below the $100,000 mark at $98,805, it has yet to reach the six-figure price level it achieved on December 5. Analysts are speculating that the market dynamics could favor Ethereum in the near future, especially as Ethereum’s relative strength to Bitcoin rises. The continued growth of Ethereum’s price, coupled with a potential stagnation or consolidation in Bitcoin's performance, may lead to more capital inflows into the Ethereum ecosystem.
Spot Ether ETFs: A Potential Game-Changer for Ethereum
Some analysts are also optimistic about the potential for Ethereum exchange-traded funds (ETFs) to outperform Bitcoin ETFs in 2025. Nate Geraci, president of ETF Store, shared his expectations in a December 20 post on X, stating that "net inflows into ETH ETFs are currently on pace with gold ETFs," with the potential for these inflows to accelerate moving forward. This could further drive demand for Ether as institutional and retail investors gain exposure to the cryptocurrency through ETFs.
Ether’s Underperformance May Be Over
The growing optimism surrounding Ethereum’s future also reflects a broader shift in sentiment. Benjamin Cowen, founder of Into The Cryptoverse, recently noted on December 4 that the long-standing underperformance of Ethereum against Bitcoin could be nearing its end. Cowen believes that the ETH/BTC ratio collapse is “over (or nearly over),” with Ethereum set to outperform Bitcoin over the next six to 12 months.
Conclusion: Ethereum’s Potential to Lead the Market
As January approaches, Ethereum could see significant upward momentum relative to Bitcoin, potentially sparking a rally in Ethereum-based altcoins. With growing optimism about the future of Ethereum, both in terms of its market strength and the increasing adoption of Ethereum ETFs, analysts are becoming increasingly confident that Ethereum’s time to shine may be at hand. If Ethereum continues to outpace Bitcoin in January, it could pave the way for a shift in investor focus, fueling a broader altcoin market rally.
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