The Decisive Winner of Crypto Warfare

This week's market was undoubtedly intense. Many stocks and index funds dropped significantly and subsequently made significant recoveries, however the tale is much different in the cryptocurrency field.

Bitcoin, the world's largest non-fiat cryptocurrency, surprisingly recovered very quickly after the market-wide dip, remaining above a strong $60,000 USD threshold per unit of Bitcoin. Meanwhile, rising contender to Bitcoin, Ethereum, fell to under $2,400 from its peak at over $3,300.

Yahoo Finance comparison chart indicates weakness of Ethereum against Bitcoin.

Ethereum is a cryptocurrency that has been advertised as the next lighting-speed crypto, promising even greater returns for investors than Bitcoin's exponential rise just a few years ago.

However, this week's market outcome highlighted a possible weakness for the young Ethereum, its declining liquidity. Initially touted as the next highest rate-of-return cryptocurrency on the market, it could not handle the massive sell-off pressure of the market this week after the Dow and S&P 500 experienced their highest losses since 2022.

Even worse for Ethereum, its price has not recovered nearly as much as its rival Bitcoin, which has proven that it has a strong foundation of support to keep its holders' investments. At this rate, Bitcoin looks like a "gold standard" compared to the weak and volatile Ethereum.

I remember many of my friends, as well as Twitter users, reacting to the rapid fall of Ethereum with surprise and uncertainty. They are definitely justified in those reactions; Ethereum's unique yet dangerous feature of volatility is what makes it a very unreliable cryptocurrency compared to Bitcoin, at least for now.