Is "Er Ge" about to start rising? Analysis: Funds are flowing from BTC into Ethercoin.

Compared to the sharp rise of BTC earlier, Ethercoin has long been sluggish, but now it finally shows signs of revival.

Market data shows that Ethercoin rose more than 4% today (26th), while BTC fell 1.5% and dropped below $95,000. Ethercoin's performance even exceeded CoinDesk's 20-index, which rose 0.5% during the same period.

In the past two days, investors have begun to shift their funds to smaller, riskier Cryptocurrencies, causing these competitive coins to perform well, while BTC's soaring trend since Trump's election has stagnated.

The 'Ethercoin/BTC ratio (ETH/BTC ratio)', which measures the strength of Ethercoin compared to BTC, fell to 0.0318 last week, the lowest since March 2021, indicating weak performance of Ethercoin. However, as of press time, the ratio has risen 15% to 0.3660.

Digital asset hedge fund QCP stated in its report:

The market clearly expects BTC to consolidate until December, and investors' attention has turned to Ethercoin in the short term.

QCP pointed out that in the options market, the risk reversal of Ethercoin is heavily biased towards front-end call options, while the call options of BTC have only attracted more bidders since the end of December this year. This indicates that traders expect Ethercoin to perform well in the short term, while BTC will not accelerate its rise until next year.

Derivatives trading company Arbelos Markets co-founder and analyst Joshua Lim said: "We are seeing native cryptocurrency hedge funds and family office funds rotating from BTC into BTC."

According to data from Farside Investors, after experiencing continuous outflows for 6 consecutive days, EthercoinSpot ETF listed in the United States saw net inflows for the first time last Friday, with 99 million US dollars flowing into ETHA, a subsidiary of BlackRock.

Analytics firm Kaiko stated in a report on Monday that ETHA's holders include "some of the most well-known companies in the financial industry," including the $80 billion hedge fund Millenium.

In the near future, the upward potential of Ethercoin may be higher than that of Bitcoin. Popular Cryptocurrency trader Pentoshi stated that the ETH/BTC ratio dipped to a key support level last week and rebounded, with the candlestick chart from last week indicating a trend reversal.

Pentoshi said in a post on the community platform X, 'The low point may have already occurred, at least a short-term reversal is imminent.'

Cryptocurrency trading company Wincent's senior executive Paul Howard said that BTC is currently far above the daily MA, as investors digest the big pump since Trump's election, BTC may continue to consolidate in the next period of time.

Is 'Er Ge' about to rise? Analysis: Funds are flowing from BTC to Ethercoin