Bitcoin has been rallying over the past week on the back of a decline in inflation and an apparent improvement in macroeconomic conditions. According to a recent report, the cryptocurrency has been on an uptrend since the beginning of 2022 and seems poised to outperform other major cryptocurrencies.
As of this writing, Bitcoin (BTC) trades at $22,800 with a 4% profit in the last 24 hours. Over the last seven days, the BTC price saw a 2% loss, while other cryptocurrencies in the top 10 by market cap are recording heavier losses.Ethereum Investors Are Cautions As Bitcoin Rallies
The number one crypto by market capitalization resumed its bullish momentum and retook above $22,000 as the U.S. published the Consumer Price Index (CPI), a proxy to gauge inflation. The metric came in hotter than expected for January, but not enough to deter investors from buying risk assets, like BTC.Although the block trades on BTC are lined with positive sentiment as many calls are traded, the traders on ETH are more cautious. Many put options are traded on, reflecting the bearish view in the short term, which may be caused by the uncertainties from the SH (Shanghai) upgrade.The upcoming SH upgrade will allow investors to unlock their ETH for the first time in over two years. This event, as often happens with significant Ethereum upgrades, could bring more downside pressure into the market, contributing to BTC’s capacity to outperform in the short term. In addition, a separate report from QCP Capital notes the increased regulatory pressure from authorities worldwide. The U.S. Securities and Exchange Commission (SEC) is leading the charge against the nascent industry targeting major companies and assets, such as BUSD.
With the “security” threat renewed once again, whether this is justified or not, the subsequent decline of ETHBTC to the year’s lows makes sense as only BTC has been given the all-important “security clearance” by them.