Over the past week, Bitcoin (BTC) price action has been sluggish. However, it has now moved above the $40K mark, indicating a potential recovery path. Ethereum (ETH) also clocked significant losses over the week but has now managed to neutralize its position.

On Saturday, Bitcoin’s price stood at a level close to $42,200, marking a daily increase of 1% as per CoinGlass data. The trading volume in crypto derivatives dropped significantly, down 55% to $21.50 billion. Despite this, Bitcoin’s total market value stayed at $828.78 billion, with open interest (OI) for Bitcoin reported at $17.98 billion. 24-hour liquidations surpassed $13.37 million, indicating sell pressure.

In comparison, Ethereum was priced close to $2,280, with a modest daily increase. The amount traded fell by nearly 50% to $8.44 billion, while its total market value was $275.03 billion. Ethereum’s OI stood at $7.79 billion, with liquidations totaling $4.35 million.

BTC vs ETH: Key metrics analysis

IntoTheBlock’s metrics reveal insightful details about the two cryptocurrencies. Bitcoin’s large transaction volume decreased by 39.08% to $25.93 billion, indicating a decrease in high-value transactions. Daily active addresses increased by 7.76% to 979,300, reflecting a rise in user activity. The holder’s balance slightly rose to $581.26 billion. Notably, exchange netflows saw a significant drop of 129.87% and touched negative $71.71 million. The whale participation rate stood at 2.31%. Currently, 82.45% of Bitcoin holders are ‘in the money,’ showing a positive investment return.

For Ethereum, the large transaction volume also decreased by 49.58% to $2.14 billion. Daily active addresses were at 595,640, up by 9.94%. Ethereum’s holder’s balance increased to $218.04 billion. Exchange netflows showed a dramatic decrease of 405.1% and touched negative $96.24 million. Ethereum whale participation rate was significantly higher at 36.89%, with 71.70% of holders ‘in the money.’

Both Bitcoin and Ethereum are experiencing a decline in large transaction volumes, which implies a relatively reduced trading interest from investors. The negative exchange netflows for both suggest that users are moving their holdings out of exchanges.

IntoTheBlock also noted that Bitcoin and Ethereum saw over a 30% decrease in transaction fees, attributed to reduced market volatility and less urgent need for transactions among users.

Bitcoin and Ethereum fees declined over 30% as market volatility decreased, leading to relatively less urgency amongst users transacting pic.twitter.com/Bk3Wd1SblY

— IntoTheBlock (@intotheblock) January 26, 2024

What are analysts betting on?

Crypto analyst Michaël van de Poppe recently said in a post on X, “I personally believe that #Ethereum is going to outperform #Bitcoin in the upcoming period and it has started since the ETF approval.”

He pointed out a ‘massive weekly bullish divergence’ and crucial resistance at 0.06 BTC. Van de Poppe also anticipates further consolidation before a potential market uptrend.

Also Read: Top Crypto Analyst Compares Investment Potentials Of Bitcoin (BTC) & Ethereum (ETH)

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Shraddha’s professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.