Key Points
- Bitcoin [BTC] fell from $110K to $107K due to Israel-Iran tensions, despite positive U.S. inflation data.
- Ethereum [ETH] is outperforming BTC in the short term, with a potential to surpass BTC in investor returns.
Bitcoin [BTC] experienced a brief surge to $110K on June 11th, following softer U.S. inflation data. Nonetheless, tensions between Israel and Iran caused a dip to $107K.
Matt Mena, a strategist at 21Shares, suggests that the cooler CPI inflation data might trigger a long-term BTC rally. He believes that BTC could potentially reach $120K if it breaks above $110K and hit $138.5K by summer’s end. The end-of-year target remains at $200K.
Ethereum Outperforms Bitcoin
In contrast to Bitcoin’s fluctuation, Ethereum [ETH] is showing promising short-term performance. On June 11th, while BTC ETFs saw $164.5 million in daily inflows, ETH ETFs recorded $240.3M, indicating superior performance on the institutional front.
ETH ETFs have been on a strong inflow streak since mid-May, unlike BTC. The ETH/BTC ratio, which tracks ETH’s relative price performance to BTC, suggests that ETH is well-positioned to surpass BTC in investor returns in the near term.
In May, ETH outperformed BTC by about 40%, as indicated by the ETH/BTC ratio rallying from 0.01 to 0.02. This could lead to an additional 28% ETH rally against BTC or a $3.15K price target for ETH.
However, the Israel-Iran tensions and potential tariff wars could pose a threat. Over the past two days, the 25 Delta Skew has dropped, indicating rising demand for bearish bets over bullish ones.
Despite these tensions, the Q2 recovery has boosted both BTC and ETH amid easing macro pressure. However, the renewed Middle East tension could potentially disrupt the bullish trend.
