After the Fed's decision, the balances have shifted: the gap between Bitcoin and Ethereum is widening.

The Federal Reserve's interest rate cut has led to a 14% increase in Bitcoin's price, attracting the attention of investors. Meanwhile, Ethereum continues to lag behind Bitcoin during this process. Analysts are evaluating Ethereum's slow institutional adoption rate and market dynamics.

Balances in the Cryptocurrency World are Changing

Recent volatility in the cryptocurrency markets continues to capture the attention of investors. Particularly, Bitcoin's performance stands out among other cryptocurrencies.

Following the Federal Reserve's (Fed) interest rate cut decision last month, Bitcoin recorded a rapid 14% increase, reaching the level of $69,500. This rise was influenced by strong interest in exchange-traded funds (ETFs) and an increase in risk appetite in the markets.

However, during the same period, Ethereum's performance lagged behind Bitcoin. While Ethereum only gained 12%, this situation drew attention in the cryptocurrency world. According to an analysis by Kaiko Research, the slow institutional acceptance of Ethereum is cited as the main reason for this performance gap.

The ETH/BTC ratio falling below 0.04 in October marks the lowest level seen since April 2021. This situation raises questions about Ethereum's position in the market.

A similar picture is observed in the futures market as well. While open interest rates in Bitcoin's CME futures reached record levels, Ethereum futures remained limited to 7,300 contracts. These data indicate that institutional investors prefer Ethereum less compared to Bitcoin.

André Dragosch, Head of Research at Bitwise Europe, emphasizes that Ethereum is lagging behind Bitcoin in market capital movements. According to Dragosch, a significant change in Ethereum's performance requires a reversal of capital flows similar to those seen in mid-2021.

On the other hand, two new articles published by Ethereum co-founder Vitalik Buterin regarding the platform's technical developments have proven insufficient to address investors' urgent issues.

In the last 24 hours, a general sentiment shift has been observed in the crypto market. In this context, Solana stands out with a 3% increase. The market capitalization of fiat-backed stablecoins reaching $160 billion is associated with this change. Bitget Research Chief Analyst Ryan Lee notes that increasing liquidity could trigger altcoin growth.

Jasper De Maere from Outlier Ventures states that the crypto market is moving with cautious optimism in the short and medium term. He expresses that geopolitical tensions and high valuations in the stock market have increased interest in Bitcoin, providing a favorable macroeconomic environment for cryptocurrencies. However, De Maere also warned of the possibility of inflation rising again in the remainder of the year, which could lead to interest rates remaining high for longer than expected, thus posing a risk to the markets.