The Ethereum ETF Rally

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Hello and welcome back to my 10 favorite people hope you’re doing well with Bitcoin doing so well recently and receiving hundreds of millions of dollars worth of ETF inflows over the past few days I find it incredibly impressive that somehow ethereum has been able to keep up with Bitcoin and

Has even slightly outperformed it year-to date even without an ETF of its own and of course this nicely agrees with arthis coming into 2024 in that we said that ethereum is likely going to outperform bitcoin this year because that’s what it tends to do in having

Years like we saw in 2020 and like we saw in 2016 and the fact that ethereum Bitcoin has gone sideways this year while Bitcoin has received these hundreds of millions of dollars worth of inflows and demand tells me that smart money is slowly rotating to ethereum and accumulating ethereum in preparation for

Its ETF launch sometime in May when the SEC has its final deadline to to make its decision on the Vanek ethereum ETF and remember that the better the Bitcoin ETFs do and the more inflows we see coming into the Bitcoin ETFs the more excited the market will be about the

Ethereum ETFs and the potential inflows it will receive of course the inflows are not going to be as big Bitcoin has a much larger brand and is much more established than ethereum is but if we do see this type of demand for Bitcoin I think the market is going to start

Forecasting demand for ethereum as well and I think we’re already seeing that front running going on on the ethereum Bitcoin pair and I think that may could be an incredible event to Rally into just like we saw with Bitcoin going into its ETF launch and of course this may

ETF deadline is going to be only 1 month after the having so if we see excitement going into the having that would also be a nice Catalyst for ethereum and the market as a whole so I do think May is the date to watch and if you still don’t

Believe the ethereum ETF is going to happen and you think you understand regulation better than Black Rock and Fidelity I think the ethereum ETF became even more likely once Black Rock and Fidelity saw how much money they’re going to make on these Bitcoin ETFs so they will do whatever lobbying is

Required and they will sue the SEC if these ethereum ETFs don’t get approved which tells me the SEC will approve them because that is not a battle the SEC is willing to fight espec especially because ethereum already has Futures ETFs on the CME so we know we have a

Great Catalyst in May but of course as I always mentioned in my ethereum videos we’re still seeing great Supply reduction on ethereum and it’s still deflationary and if we were to project the last 30 days worth of ethereum burn it would be $2.5 billion this year as

Opposed to if it was still proof of work we would have $12 billion of new ethereum issued this year so there’s a huge gap between where ethereum would be and where it is today thanks to the burn mechanism and it is still deflationary for this year and I think that

Combination of deflationary ethereum with demand going into its ETF could be a great combination for it to outperform bitcoin this year and do incredibly well and play catch up to bitcoin which is why it is 25% of my portfolio alongside Bitcoin and now I know what you’re thinking wait a minute I thought

Ethereum and Bitcoin were 20% and your cash was 50% but this isn’t any changes I actually made this is just from Bitcoin and ethereum going up about 20 to 30% over the past 2 weeks or so and I just updated these Holdings so I haven’t made any changes to my actual

Allocations this is just a result of Bitcoin and ethereum doing very well recently which means my cash Holdings are now 40% even though I didn’t deploy any more money into the market and now of course even though I’m bullish ethereum and think it’s going to outperform bitcoin and I think the chart

Looks great we’re still going to have to keep an eye out for recession concerns obviously this recession keeps getting pushed back and we have no idea exactly when it’s going to happen but rate Cuts continuing to get pushed back is a good sign because it means the FED does not

Think anything has broken in the economy quite yet and of course we’re going to monitor all of our leading indicators because we know that the recession always comes after the First Rate cut so that gives markets some nice breathing room if we’re not going to see any rate

Cuts until May but of course that’s something we’re going to monitor going forward we’re going to watch the unemployment rate and make sure it doesn’t Spike because if it does best believe things will get ugly for risk assets and of course our leading indicator for unemployment is initial

Jobless claims and we got another low print for that today so things are still fine for now and of course we still have the S&P P 500 holding up okay we’re still expecting a correction thanks to seasonality but as long as we don’t see any huge crashes from the S&P 500 I

Think Bitcoin and ethereum could still do well in the short term and that’s why I have the portfolio that I do I still haven’t decided if I’m going to add any altcoin exposure I’m probably going to decide that based on how Bitcoin and ethereum’s weekly closes end up looking

But for now my portfolio is going to remain unchanged and I’m just going to enjoy prices going up even though I’m not 100% allocated to the market because I’m still happy making money even if I don’t have maximum exposure and of course we’re still closely monitoring February’s close will we get a close

Above the 618 Fibonacci retracement before the having for the first time in bitcoin’s history of course we’re not going to know for sure but it does look decent as of right now but of course a ton can change in two weeks and we still have two weeks to go in February we

Still have salana looking pretty strong still holding above that 108 level it’s not really moving as much as Bitcoin and ethereum are but it did outperform significantly in late 2023 so it’s probably still digesting that rally and of course the main strategy it’s pretty insane how vertical this chart has

Become but we did say that as long as the FED is paused risk assets can still continue higher because the economy hasn’t broken quite yet but it’s even surprised me with the strength that we’ve seen from Bitcoin because I was definitely expecting this correction to take longer and go a little bit deeper

To the downside and obviously the more parabolic we go the harder we’re going to correct when we do but of course the million do question is when is that correction actually going to be and there’s just no way of knowing that as of right now and we’re going to wait for

The weekly close to get some guidance as to what could be next so we’ll see what happens as of right now ethereum is approaching the mid level so I wouldn’t buy any here I would wait for I would either dollar cost average over the longer term or wait for some corrections

I’m not interested in adding any exposure at resistance even though I think we’re going to see a rally into the ETF deadline but may is still very far away A lot can happen in this market in 3 months but it is nice to see ethereum finally showing some strength

And finally moving a little bit after consolidating for almost two 2 and A2 months once it broke above 2,000 so nice to see that strength there and of course as demand increases as excitement increases we’d expect the burn to increase as well which will further increase excitement as price goes up

Into these ETFs going live but that’s something we’re going to have to monitor going forward but anyway let me know what you expect will ethereum do well does it even make sense to hold ethereum anymore because of how large of an asset it is and how it’s likely to be

Outperformed Med by other smaller altcoins I still like holding ethereum because I think its risk reward is still solid of course it’s not going to outperform smaller altcoins but if it can outperform Bitcoin with a minimal risk then I’m still happy allocating to it especially when there’s a very clear

Catalyst for it in May right after the having but we’ll see what happens and definitely keep an eye on it going forward thank you so much for the support on the recent videos thank you so much for watching and I’ll talk to you soon