/biz/ - Business & Finance

ETH is at its lowest ratio against BTC that I've ever personally witnessed since entering the market a few years ago. I know there are a lot of factors beyond TA that affect its value. Psychologically, I would speculate that top alts are more tied to bitcoin's movement and do not function as hedges against bitcoin. I would say there are two distinct groups of projects in this space: the blue chip, high-cap projects viewed as equivalent to BTC as stores of value, which are generally older projects and on one hand are viewed as sure things with lower but more reliable long term rewards. The other group is riskier, lower cap alts that are used as hedges against the first group and are what benefit most from "alt season" when BTC dominance gets too high and people take profits.

People just aren't throwing their money into ETH and top 10 coins when they sell BTC; it seems like there's a lot more enthusiasm among traders in smaller cap alts which can do backflips when BTC money pours into them. In fact it seem like the higher ranked alts are tied to bitcoin because they are, like BTC, where money goes when people sell alts as alt season concludes. And this is not just a psychological phenomenon, it's mathematical. The higher cap an alt, the less exciting it is as a next hurrah when you're selling your BTC after a rally and are looking for the next thing that will pump; buying action in high-cap alts just doesn't produce the same rallies and rewards as pumping lower cap projects.

It seems like the alts in the top 10 are weakly following BTC and not recovering much ground against king shitcoin. What do people think about the near-to-mid term prospects of ETH? What factors might drive it up or down?