Two Prime, an SEC-approved investment advisor, has cut ties with Ethereum, citing its erratic behaviours and shaky fundamentals. The firm is now exclusively backing Bitcoin, which has seen significant buying pressure. With indicators suggesting a bullish outlook for Bitcoin, the cryptocurrency’s price is poised to continue climbing, potentially reaching the $100,000 mark.
In a surprising move, investment advisor Two Prime has decided to sever its ties with Ethereum after six years of involvement. Citing the cryptocurrency’s unpredictable behaviour and shaky fundamentals, the firm has turned its focus solely onto Bitcoin. This decision comes as institutional interest in Bitcoin surges, positioning it as a potentially sound investment amidst growing buy pressure.
Ethereum’s recent performance has been so erratic that Two Prime’s representatives likened its behaviour to that of “memecoins”, noting a lack of investor confidence. They argue that, given Bitcoin’s increasing momentum and institutional backing, the risk-reward profile for Ethereum simply isn’t justifiable. Additionally, the ratio of Ethereum to Bitcoin has hit a five-year low, illustrating Ethereum’s marked decline in favourability among investors.
On-chain metrics reinforce the bullish sentiment towards Bitcoin. The Taker Buy/Sell Ratio on Binance has hit 1.142, indicating significant buying pressure—and a shift towards a more aggressive buy strategy rather than waiting for price dips. For example, younger Bitcoin whales, whose purchase price was just above $90,000, now find themselves enjoying gains exceeding 7%. Currently, Bitcoin trades at approximately $96,638, reflecting an upswing in market confidence.
Looking at Bitcoin’s technical indicators, the daily charts present a strong bullish argument. The Relative Strength Index (RSI) hovers just below the overbought mark. Meanwhile, the MACD shows a clear bullish crossover; the blue line is above the orange signal line, suggesting momentum may continue in a positive direction. Also, key Fibonacci levels indicate Bitcoin has reclaimed support at $90,994 and appears to be consolidating, potentially heading towards the psychological $100,000 mark and further resistance around $108,000.
That said, a pullback could see support levels near $87,863 (0.382 Fibonacci level), with a stronger confluence zone sitting around $85,533 (0.5 level). A fall below $80,000, however, would disrupt the current bullish sentiment and invalidate the positive outlook—but with the current bullish pressure, this scenario looks increasingly unlikely.
In summary, Two Prime’s shift from Ethereum to Bitcoin might signal a broader trend for institutional investors as market dynamics continue to evolve. Investors are advised to remain vigilant, as market conditions can change swiftly. It’s best to carry out due diligence and consult professionals for tailored advice before making investment decisions.
