Bitcoin-Ether ratio flashes potential warning about crypto rally

This pattern could be “a very early signal” of FOMO — or fear of missing out — morphing into “fear” if Ether is viewed as a proxy for sentiment toward smaller tokens, crypto asset trading company QCP wrote in a note on Friday.

Bitcoin reached a record high of $73,798 in mid-March atop a surge of inflows into dedicated US exchange-traded funds that debuted in January. The token has since retreated about 9% as demand cooled. A gauge of smaller digital assets has slumped even more over the same period, shedding some 20%.

Looking beyond the crypto market, a potential Bitcoin top as investors lose appetite for cryptocurrencies “signals a weaker ,” Stifel Nicolaus & Co. strategists including Barry Bannister wrote in a note this week.

Crypto traders are now awaiting a four-yearly event known as the Bitcoin halving, which reduces new of the token. Doubts have emerged over whether the halving live up to its reputation of being a bullish tailwind.

Bitcoin was steady at $67,825 as of 5:25 p.m. Friday in New York, while Ether was also little changed at $3,340.

Source: Forex-Markets-Economic Times