After Bitcoin and the newly launched Bitcoin ETF dominated the attention of crypto investors in January, Ether is poised to take the spotlight in the coming month. Bitcoin and Ether are both on pace to end the month up nearly 2%, according to Coin Metrics. In January, pre-launch hype for the first U.S. spot Bitcoin ETF saw sharp price fluctuations, followed by inflows and outflows into the fund after it began trading on January 11th. Now that outflows have tapered off, Bitcoin’s outlook has worsened. The economy remains strong this year, boosted by the upcoming halving and the possibility of rate cuts. Ether and altcoins are poised for a breakout as investors can expect slow and steady inflows into Bitcoin through newly institutionalized ETFs in the coming months. “Short-term flows are dominated by GBTC.” [Grayscale Bitcoin] As the flow of sales… eases, the market gains a foothold and the reality of a world where large asset managers are aggressively promoting cryptocurrencies is starting to materialize,” said Co-founder of decentralized exchange Vertex Protocol. Darius Tabatabai said. Alternatives are acting as a high beta for this trend, and we expect both to outperform as more focus begins to roll out on the ETH upgrade. [the Ethereum network] …ETF approval is also a possibility” February is a historically strong month for both Bitcoin and Ether. According to Coinglass, Bitcoin has ended September of the past 11 Februarys with a profit, with an average return of 13.12% for the month. Ether has risen in six of the past seven months since its inception, with an average gain of 12.97% in February. Immediately after the Securities and Exchange Commission approved trading in the Spot Bitcoin ETF, investors took profits and moved their money into Ether, giving it a boost. The SEC is expected to make decisions on spot ETH ETF applications starting in May, with BlackRock, Invesco, Ark, and VanEck among the companies awaiting approval. Standard Chartered said in a note this week that ahead of the May decision, it expects Ether to follow or outperform Bitcoin’s pre-ETF uptrend over the same period. . If that happens, it could reach $4,000 by then, which would represent an increase of about 70% from current levels, the bank added. “Bitcoin remains the more popular macro asset with appeal that spans traditional finance, and Solana offers a faster and cheaper alternative to Ethereum,” said Jeff Dorman, chief investment officer at crypto asset management firm Arca. It is gaining popularity as a.” “Nevertheless, Ethereum is not going anywhere anytime soon, with ETFs being approved and Bitcoin investors seeking exposure to growing areas of blockchain that Bitcoin cannot provide, such as stablecoins and NFTs. It could even compete with Bitcoin if it finds itself in the market.” [decentralized finance],game [and] AI,” Dorman added. Ethereum is continually improving and upgrading, which will help the network grow in line with cheaper and faster alternatives like Solana. The next big update, called “Dencun”, is expected to arrive in February and aims to improve so-called Layer 2 solutions (which sit on top of base networks like Ethereum and provide additional capacity and functionality to the network). transactions can be carried out cheaply on existing networks). Ether is also poised to benefit from the popularity of altcoins. Jason Urban, global head of trading at Galaxy Digital, which runs on the Ethereum blockchain, said: “We’re seeing an uptick in interest in alternatives…probably more for Ethereum than for Bitcoin. “These people are ready to benefit from it,” he said. “There are going to be people who embody that play, especially people who go above and beyond.” [traditional finance] People who may not have access to or the ability to trade alto bags. This is reflected in ETH. ” ETH is heading for a 2% gain in January, but other alternative currencies are mixed. However, since January 23rd, when Bitcoin fell below $40,000 for the first time this year, they have “rallied, while ETH has stagnated. ETH has weakened over this period, while SOL has increased by 19%. “Polygon’s MATIC rose 7%, while tokens associated with Chainlink and Cardano rose 6% and 5%, respectively.” If you believe in bullish market trends like 2020 and 2021, It makes sense to invest in the ‘fastest horses’, which are smaller and cheaper blockchains and applications,” Dorman said.