Despite the spotlight on Bitcoin regaining $50,000, Ether remains optimistic following its successful London hard fork deployment earlier this month. According to new research, Ethereum’s native token, Ether (ETH), may beat Bitcoin (BTC) to new all-time highs.
A liquidity shortfall could ultimately contribute to propel ETH/USD to new historic high before BTC/USD, thanks in part to supply changes forced through via the hard fork.
Ki Young Ju, CEO of on-chain analytics provider CryptoQuant, noted a “sell-side liquidity crisis” in a tweet on Wednesday, which might give ETH the upper hand over BTC.
“Current $ETH price is closer to ATH compared to $BTC. Higher demand, lower supply. $ETH sell-side liquidity crisis still intensifies, while $BTC exchange reserve stopped its downward trend in May.”
Bitcoin exchange reserves have been dropping in numbers since May, only to rebound in late July. BTC reserves fell to 2.44 million this week after reaching a high of 2.54 million on July 26.
Since late May’s local high of 21.43 million held on exchanges, ETH has been on a mainly straight slide. The current exchange balance is roughly 19.25 million as of this week.
Meanwhile, data continues to reveal that a supply shock is underway for Bitcoin, which has a history of causing price spikes in the cryptocurrency.