Ethereum set to outperform Bitcoin in 2025, analyst predicts

Crypto analyst Benjamin Cowen has made a bold prediction regarding the future performance of Ethereum compared to Bitcoin, suggesting that Ethereum will begin to outperform Bitcoin in 2025. This forecast is based on Cowen's analysis of historical trends in the ETH/BTC ratio, indicating that Ethereum is approaching the end of its current underperformance cycle against Bitcoin. He expressed confidence in this prediction during a recent Bankless podcast, highlighting the potential for a significant shift in market dynamics for these leading cryptocurrencies. Cowen also provided insights into Ethereum's price trajectory, predicting a possible dip below $2,000 towards the end of the year, followed by a rebound in 2025. He emphasized the critical role of the Federal Reserve's monetary policy decisions in shaping the crypto market's future, suggesting that a pivot in policy could occur in the coming months. This shift is expected to transition the market from a quantitative tightening phase to a quantitative easing phase, similar to the conditions observed in 2019. The analyst maintained a bullish long-term outlook for both Bitcoin and Ethereum but advised investors to exercise caution in the short term. He recommended that investors consider rebalancing their portfolios, potentially increasing their allocation to Ethereum to around 20% by 2025. Cowen's analysis underscores the importance of macroeconomic factors, such as interest rates and the Fed's balance sheet, in influencing cryptocurrency market movements. As the crypto market evolves, the upcoming Future of Digital Assets event on November 19 will delve into Bitcoin's role as an institutional asset class, further exploring the dynamics between these two major cryptocurrencies and their future trajectories.