Bitcoin jumped to $109K, a new high post-Trump's re-election

But Ethereum is still lagging, stuck at 68% below its 2021 peak. By Mike McGlone, updated April 18, 2024 at 1:13 a.m. PDT

Bitcoin price today jumped to $109K, a new high post-Trump’s re-election, but Ethereum is still lagging, stuck at 68% below its 2021 peak. But right now, the market is bleeding, and Bitcoin may drop below $80K, which has created panic in the market, especially for altcoins.

The dump factor was Trump’s latest displeasure over the Russians’ handling of the ceasefire. Already the market has suffered a lot with Trump’s dwindling Tariff war and his Bitcoin reserve plan, which failed to impress the investors. However, Ethereum is still moving in sync with riskier assets, but things aren’t looking great.

Bloomberg’s senior commodity strategist, Mike McGlone, warns that if U.S. stocks keep falling, ETH could plunge to $1,000 this year. A climb back to $2,000 might be a sign of strength, but with Bitcoin on shaky ground, altcoins could take an even bigger hit.

Crypto's Rocky Road Ahead

McGlone compares Bitcoin's journey to a snowball rolling downhill, gathering mass and pulling other tokens along. Starting in 2009 as a digital safe haven alongside gold and silver, Bitcoin has grown into a massive ecosystem, collecting Ethereum and other altcoins in its wake.

However, the increasing speculation in crypto markets is raising red flags. When assets rely too much on hype and the promise of endless growth, regulators usually intervene, and that could put serious pressure on Ethereum's future.

Gold: Stellar Performance

Unlike crypto, gold is having a stellar year, climbing 26% in 2024. With inflation fears, global tensions, and investors seeking safer options, gold has emerged as a preferred asset.

The gold-to-copper ratio, often a key signal for economic health, is also rising to levels last seen in 2009 and 2016, which could indicate further economic difficulties.

Where Will ETH Go From Here?

The outlook for Ethereum isn't optimistic. If economic conditions improve and risk assets bounce back, we might see ETH attempt to reclaim the $2,000 level.

But if the market keeps tumbling, another steep drop towards $1,000 could be coming this year, and with Bitcoin already facing trouble, we might see altcoins, like ETH, take an even bigger hit.

Crypto analyst Lekker Capital's Quinn Thompson sees little chance that ETH will recover, calling it a “dead investment” due to falling usage and fees. While Layer-2 adoption is increasing, which is helpful for the ecosystem, it's not clear whether it's benefiting ETH or just boosting other tokens.

Despite $4 billion in ETF inflows and the upcoming Pectra upgrade, BlackRock prefers to highlight the importance of staking-enabled ETH ETFs, which they believe could be a real game-changer for the crypto market.