Bitcoin (BTC) is on a tear.
BTC gained more than 40% since the November 5 election, and currently sits at $97,000.
If you’ve been following me, you know we’ve predicted the elections will kickstart the euphoria phase of the crypto bull market. I believe bitcoin could go as high as $250,000 this time around.
But while everyone’s focused on BTC, a massive rotation is brewing under the surface… one that should send Ethereum (ETH) into the stratosphere.
Right now, we’re witnessing what we call the “Great Crypto Rotation.”
It’s a predictable four-phase cycle that’s played out time and again in crypto markets.
Source: CoinGecko
Phase 1 is simple: Bitcoin leads the charge. Big money floods in, pushing bitcoin to new heights.
This is where we are now.
But Phase 2 is where fortunes are really made. That’s when altseason begins Ethereum takes center stage.
During the last altseason, Ethereum outperformed bitcoin about 8 to 1. And many altcoins did even better.
We seem to be on the cusp of another such explosive move today.
Look at this chart, it measures bitcoin dominance, the total value of bitcoin vs Ethereum and other coins:
Source: Coinmarketcap
Bitcoin dominance just reached multi-year highs. In fact, the last time it was at this level, it dropped sharply while Ethereum and other coins gained market share. I believe this will happen again.
The smart money — hedge funds and high-net-worth individuals — are positiong themselves for the Ethereum pump too. You can see this in the research shared by Market Prophit:
Source: Market Prophit
Meanwhile, crowd sentiment remains flat. It’s the perfect chance to get ahead.
See, while bitcoin is basically digital gold, Ethereum is the foundation of an entire digital economy.
Thousands of blockchain apps are being built on the Ethereum infrastructure. And each one pays millions of tiny fees to Ethereum for each transaction. Ethereum made $170 millions in fees in the last 30 days alone.
Comparing BTC to ETH is like comparing a gold bar to the entire New York Stock Exchange.
It’s why I believe the “flippening” — where Ethereum’s market cap surpasses bitcoin’s — is practically inevitable.
For Ethereum to get bigger than BTC, it would need to jump 5X. That’s if BTC price stays where it is. But if BTC goes to $250k, then ETH could surge as much 13X.
Most investors will miss this move entirely. They’ll keep chasing bitcoin because that’s all they’ve ever known.
It’s time for a new playbook: A.B.B. — Anything But Bitcoin.
The window to position yourself won’t stay open long. Once the altseason kicks into high gear, Ethereum’s move will likely be swift and dramatic.
If you’re wondering how much Ethereum to buy, adopt a lopsided barbell strategy.
It’s what we recommend in my RiskHedge Venture crypto advisory.
The barbell strategy is a portfolio construction tool that strikes the right balance between risk and reward. It does so by investing in two distinct types of assets, on both extremes. On one end, you have “safer” assets like Ethereum and Solana. You would put the majority (75% to 90%) of your crypto investments in the safer portion.
The other 10% to 25% would be allocated to “higher-upside” assets like Helium, or Hivemapper.
So, your crypto portfolio would resemble a lopsided barbell:
Bottom line: The altseason is here. Sell bitcoin and buy Ethereum.
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I publish fresh research on stocks and crypto every Monday and Friday.
— Stephen McBride, Chief Analyst at RiskHedge
It’s time to buy Ethereum. was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.