Bitcoin and Ethereum Set for New All-Time Highs

The recent buzz in the crypto realm centers around a rather audacious prediction: Bitcoin (BTC) and Ethereum (ETH) will soar to new all-time highs (ATHs) by Q1, 2024. The global crypto market cap surged over 3% to $1.32 trillion, with trading volumes up 43% at $57.45 billion. This boost came in response to the Federal Reserve maintaining interest rates, propelling the market cap to around $1.35 trillion.

Bitcoin rose over 3%, surpassing 35,500, while Ethereum gained 3% but stayed below $1,900. By all means, Chris Burniske’s forecast has captured the attention of crypto enthusiasts and skeptics, but let’s dive into the details to see how this projection stacks up against the dynamic world of cryptocurrencies.

If $BTC & $ETH rip here, and then everything else follows, we could be in for a mid-2019 repeat — going just high enough to get people to believe that maybe, just maybe, new ATHs are around the corner, before enduring a final wipeout (Q1 ‘24?) and putting in firm higher lows.

— Chris Burniske (@cburniske) November 2, 2023

ETH & BTC Prices Are Pushing The Roof

Ethereum’s native token, Ether (ETH), is currently trading at its lowest level compared to Bitcoin (BTC) in 15 months, marking the lowest point since Ethereum transitioned to proof-of-stake (PoS). Historically, Ethereum outperformed BTC during bullish trends, but this shifted in early 2023. Regulatory pressures, reduced investor inflows, and a surge in interest in stablecoins have all contributed to this change. 

Additionally, Bitcoin’s dominance in the market has risen to 54%, its highest level in 30 months, indicating growing strength before the scheduled April 2024 halving event. This, coupled with expectations of a spot BTC ETF, suggests increased bullish sentiment toward Bitcoin over Ethereum.

Comparing the Past vs Future

The analyst compared today’s current scenario with mid-2019, a common reference point, which is a tricky task. Since then, the world of crypto changed drastically. Institutional investors have taken center stage, and regulatory frameworks have become more apparent. While history can provide insights, the underlying market forces have evolved.

The notion that a surge in BTC and ETH prices will automatically lead the entire crypto market to rally might be overly simplistic. Crypto space now boasts a multitude of coins and tokens, each with distinct use cases, partnerships, and technological advancements. While BTC and ETH undeniably exert influence, newer assets like Polkadot, Cardano, or niche NFT-based tokens can exhibit independent behavior.

But having said that, the idea of a final market wipeout in Q1 2024, potentially paving the way for higher lows, hints at a cautious approach, suggesting a looming bear market. While market corrections are intrinsic to the crypto world, predicting the exact timing of such events remains challenging due to the inherent volatility of digital assets.

Behind the Signals, There’s a Catch!

Looking at the broader trajectory, the Analyst said that key market indicators currently point to a relatively stable capitalization with a mild upward trajectory. Volume fluctuations and the Crypto Fear & Greed Index signal a balanced mix of optimism and caution. We’re not in a state of “extreme greed,” which usually foreshadows sharp market corrections.

Stay tuned for what Q1 2024 holds!

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Sohrab Khawas

Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he’s trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he’s not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.