The shoot to the moon has reached super speed (not hyper yet) for cryptos.

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Bitcoin

Investors seem to favour Bitcoin in December 2023, rising more than Ethereum. The reasoning is simple. Many institutional players rushed their regulatory filings in the last week of 2023, and investors are optimistic about the approvals by the Securities Commission. And I think that is the main reason driving the investor’s interest. Furthermore, the ‘halving’, an event that halves the rewards for mining Bitcoin every 4 years is happening in 2024. Investors could be piling into Bitcoin in anticipation of the positive impact it could have on the market.

Take Note Of

The approvals of Bitcoin-related funds by big players. This has been much anticipated by investors in the market since June 2023. Successful approvals could drive Bitcoin prices higher. In the long term, this could increase the legitimacy of cryptocurrency as an investment instrument for the masses.

Ethereum

It rose sharply also but not as much as Bitcoin. Maybe that’s good news, maybe that’s bad. I would like to think that it is good. I think Ethereum’s technology is different and has more potential compared to Bitcoin. In the long term, however, I am concerned about the pace of its improvement in ‘gas rates’ (how much currency and power is needed to verify activities). In my opinion, it has been slow. Much can be done to further improve on this.

Take Note Of

In the short-term, Bitcoin movements would be key to Ethereum as most of the market is now driven by an interest in Bitcoin-related funds. In the long term, I would monitor the pace of the improvement in Ethereum’s ‘gas rates’ and its initiatives to do so.