The report discusses the evolving narratives and correlations within the crypto market, particularly between Bitcoin (BTC) and Ethereum (ETH). The report highlights the growing divergence between BTC and ETH, with BTC increasingly being seen as a macro underlying asset akin to foreign exchange and precious metals, while ETH is likened to mega stocks. The report also introduces the concept of “Crypto 3.0”, a new narrative that includes macroeconomic factors, AI, and other elements. The report suggests that BTC is becoming a preferred choice for macro traders, while ETH is attracting investors interested in AI and other applications.
- BTC is becoming a macro asset: The report suggests that BTC is increasingly being seen as a macro underlying asset, similar to foreign exchange and precious metals. This is due to its status as a global liquidity network and its recognition as a compliant asset.
- ETH is likened to mega stocks: ETH is being compared to mega stocks due to its potential for widespread application. However, the report suggests that unless there is a grander narrative and more widespread application, ETH’s attractiveness for liquidity may continue to be weaker than BTC.
- The emergence of “Crypto 3.0”: A new narrative, termed “Crypto 3.0”, has emerged in the crypto market. This narrative includes macroeconomic factors, AI, and other elements. The report suggests that this narrative will have a profound impact on BTC, ETH, and other cryptos.
- Investor preferences are shifting: The report indicates that investor preferences are changing, with macro traders tending to buy and hold BTC, while AI investors are leaning towards US stocks and cryptos such as ETH.