- Bitcoin surpassed its previous all-time high after the election, while Ethereum neared the $3k resistance
- Raoul Pal predicts that Ethereum could surpass Bitcoin due to changing regulations and the growth of DeFi
Donald Trump’s victory as the 47th President of the United States has created positive waves in the cryptocurrency market, with some coins soaring to new heights.
Analyzed the price action of Bitcoin and Ethereum
Bitcoin [BTC]in particular, benefited from post-election momentum and broke the previous all-time high, set earlier in March.
At the time of writing, Bitcoin was trading at $76,121.63, after rising 1.58% in the past 24 hours and up 8.68% in the past week.
So is Ethereum [ETH]the second largest cryptocurrency by market capitalization, surpassed the critical resistance level of $2,500 and was trading at $2,926.80. At the time of writing, it had risen over 12% on the weekly charts.
Together, these developments indicated a continued bullish trend for the market’s leading cryptocurrencies in the wake of Trump’s election victory.
Bitcoin surpasses Ethereum, but Raoul Pal thinks differently
When comparing the price movements of Bitcoin and ETH, it is clear that Bitcoin has exceeded expectations and surpassed its previous all-time high. On the contrary, Ethereum, which was widely expected to break the $4,000 mark, has yet to reach that milestone.
In the midst of this, Raoul Pal made an argument suggesting that ETH could soon surpass Bitcoin in terms of performance.
He said,
“I expected $ETH to gain ground on BTC. It is partly determined by the cycle of risk-taking, but also by the elections.”
What factors did he use to support his argument?
Pal further highlighted several factors that could drive Ethereum’s potential outperformance over Bitcoin.
He noted the positive evolution of the crypto regulatory framework, which is expected to continue improving in the near future. As regulations become clearer and more robust, Pal believes that ETH, with its dominant role in the decentralized finance (DeFi) space, is well positioned to reap the benefits.
Furthermore, DeFi tokens are gaining popularity and offering lucrative opportunities, and Ethereum’s fundamental role in this ecosystem increases its value.
Finally, ETH’s strong reputation for security and trust makes it a strong contender for integration into traditional finance, where its flexibility and scalability could attract institutional adoption.
What’s more?
He concluded his speech with the words:
“My view is that ETH starts to outperform BTC for the rest of the cycle, but underperforms SOL and $SOL underperforms $SUI as SUI is in the ultimate performance stage of adoption – early > proven. ”
Here it is worth noting that Pal’s thoughts were met with criticism Chris Close who said,
Source: Chris Close/X
Still, Pal remained steadfast in his argument and responded by saying:
“We all have problems, my friend. It doesn’t stop us from achieving greatness.”
Ergo, thanks to Ethereum’s positive momentum and continued efforts to break through the $3k mark, the coming days will reveal whether it can sustain this upward trajectory or not.