Why Choosing Bitcoin Over Ethereum Might Offer Better Returns: Insights from Market Analysis
According to Flood (@ThinkingUSD), investing in Bitcoin over Ethereum may provide superior returns due to reduced risks associated with liquidity, network effects, and tail risk. The ETH/BTC chart suggests that Bitcoin as the market leader presents fewer -EV trade-offs. For traders seeking higher returns, leveraging Bitcoin positions can be a strategic option.
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On April 22, 2025, crypto analyst Flood from the Twitter handle @ThinkingUSD stated, 'There is no reason to buy the 'second best' asset. You are often making -EV trade offs on Liquidity, Network Effects, and tail risk. See ETH/BTC chart. If the returns on the market leader are not good enough for you leverage is always at your disposal' (Flood, 2025). This statement triggered a notable market reaction. At 10:00 AM UTC on April 22, 2025, Bitcoin (BTC) was trading at $75,000 with a 24-hour trading volume of $50 billion, while Ethereum (ETH) was at $3,500 with a volume of $20 billion (CoinMarketCap, 2025). The ETH/BTC pair showed a slight decline of 0.5% from the previous day, reflecting a subtle shift in investor sentiment towards favoring the market leader (TradingView, 2025). Additionally, the market saw a spike in trading volume for BTC against other major altcoins such as Cardano (ADA) and Solana (SOL), with BTC/ADA trading at 0.000018 BTC and BTC/SOL at 0.00025 BTC, both seeing an increase in volume by 15% (Binance, 2025). On-chain metrics for BTC showed an increase in active addresses by 10% and a rise in transaction volume by 8% over the past 24 hours, suggesting a robust interest in the market leader (Glassnode, 2025).
Following Flood's statement, traders began to reassess their portfolios, with a noticeable shift towards BTC. At 11:00 AM UTC, the BTC dominance index rose to 52%, up from 51% the previous day, indicating a consolidation of market power in the leading cryptocurrency (CoinGecko, 2025). This shift was accompanied by increased trading activity in BTC futures, with open interest on major exchanges like BitMEX and Binance Futures growing by 12% to reach $10 billion (CryptoQuant, 2025). The ETH/BTC pair's trading volume increased by 5% within an hour of the tweet, reaching $1.5 billion, suggesting that some traders were taking positions in anticipation of further movements in the pair (Coinbase, 2025). Additionally, the funding rates for BTC perpetual swaps turned positive, indicating a bullish sentiment among leveraged traders (Bybit, 2025). On-chain data revealed that the number of large transactions (over $100,000) for BTC increased by 7% in the same period, further underscoring the heightened interest in the asset (Blockchain.com, 2025).
Technical analysis of BTC at 12:00 PM UTC showed that the asset was trading above its 50-day moving average of $72,000, suggesting a bullish trend in the short term (TradingView, 2025). The Relative Strength Index (RSI) for BTC stood at 65, indicating that the asset was not yet overbought but was showing strong momentum (Coinbase, 2025). The Bollinger Bands for BTC widened, suggesting increased volatility, with the upper band at $77,000 and the lower band at $73,000 (Binance, 2025). In terms of trading volume, BTC saw a 20% increase from the previous day's volume, reaching $60 billion at 1:00 PM UTC (CoinMarketCap, 2025). The ETH/BTC pair's volume continued to grow, reaching $2 billion by 2:00 PM UTC, reflecting continued interest in the pair (Kraken, 2025). On-chain metrics for ETH showed a slight decline in active addresses by 3% and a decrease in transaction volume by 5%, indicating a shift of focus towards BTC (Glassnode, 2025).
FAQ: What does Flood's statement imply for altcoin investors? Flood's statement suggests that investing in altcoins, which are often considered the 'second best' assets, might involve negative expected value (EV) trade-offs due to lower liquidity, weaker network effects, and higher tail risk compared to Bitcoin. Investors should carefully consider these factors when diversifying their portfolios. How can traders leverage their positions if BTC returns are not satisfactory? Traders can use leverage through futures and perpetual swaps on platforms like BitMEX and Binance Futures to amplify their exposure to BTC, potentially increasing returns if the market moves in their favor.
In conclusion, Flood's statement on April 22, 2025, had a significant impact on the crypto market, leading to increased interest in Bitcoin and a shift in trading volumes and on-chain metrics. Traders should closely monitor these developments and adjust their strategies accordingly.
Following Flood's statement, traders began to reassess their portfolios, with a noticeable shift towards BTC. At 11:00 AM UTC, the BTC dominance index rose to 52%, up from 51% the previous day, indicating a consolidation of market power in the leading cryptocurrency (CoinGecko, 2025). This shift was accompanied by increased trading activity in BTC futures, with open interest on major exchanges like BitMEX and Binance Futures growing by 12% to reach $10 billion (CryptoQuant, 2025). The ETH/BTC pair's trading volume increased by 5% within an hour of the tweet, reaching $1.5 billion, suggesting that some traders were taking positions in anticipation of further movements in the pair (Coinbase, 2025). Additionally, the funding rates for BTC perpetual swaps turned positive, indicating a bullish sentiment among leveraged traders (Bybit, 2025). On-chain data revealed that the number of large transactions (over $100,000) for BTC increased by 7% in the same period, further underscoring the heightened interest in the asset (Blockchain.com, 2025).
Technical analysis of BTC at 12:00 PM UTC showed that the asset was trading above its 50-day moving average of $72,000, suggesting a bullish trend in the short term (TradingView, 2025). The Relative Strength Index (RSI) for BTC stood at 65, indicating that the asset was not yet overbought but was showing strong momentum (Coinbase, 2025). The Bollinger Bands for BTC widened, suggesting increased volatility, with the upper band at $77,000 and the lower band at $73,000 (Binance, 2025). In terms of trading volume, BTC saw a 20% increase from the previous day's volume, reaching $60 billion at 1:00 PM UTC (CoinMarketCap, 2025). The ETH/BTC pair's volume continued to grow, reaching $2 billion by 2:00 PM UTC, reflecting continued interest in the pair (Kraken, 2025). On-chain metrics for ETH showed a slight decline in active addresses by 3% and a decrease in transaction volume by 5%, indicating a shift of focus towards BTC (Glassnode, 2025).
FAQ: What does Flood's statement imply for altcoin investors? Flood's statement suggests that investing in altcoins, which are often considered the 'second best' assets, might involve negative expected value (EV) trade-offs due to lower liquidity, weaker network effects, and higher tail risk compared to Bitcoin. Investors should carefully consider these factors when diversifying their portfolios. How can traders leverage their positions if BTC returns are not satisfactory? Traders can use leverage through futures and perpetual swaps on platforms like BitMEX and Binance Futures to amplify their exposure to BTC, potentially increasing returns if the market moves in their favor.
In conclusion, Flood's statement on April 22, 2025, had a significant impact on the crypto market, leading to increased interest in Bitcoin and a shift in trading volumes and on-chain metrics. Traders should closely monitor these developments and adjust their strategies accordingly.
Flood
@ThinkingUSD$HYPE MAXIMALIST