Ethereum (ETH) is showing higher volatility than Bitcoin (BTC) and may be a better risk-on investment for 2025, as recent market declines have hit ETH harder, indicating its sensitivity to risk-off flows and potential for higher gains in a risk-on environment.
The market week ahead is expected to see a risk-on sentiment as equity markets rebounded and reached multi-week highs, while the VIX 'fear gauge' dropped. Cryptocurrencies surged on increased volume, with Bitcoin and Ethereum rallying on the possibility of spot ETFs. The US dollar had a mixed week, following US Treasury yields, and ended on a high note. Gold faced a tough week, reaching a three-week low due to investors shifting away from safe-haven assets. The upcoming week will feature high-impact economic releases, including inflation reports from the UK, Eurozone, and the US. The British Pound remains vulnerable against the US dollar but is strengthening against the Japanese Yen, while the Euro may face pressure from a drop in euro area inflation. The US dollar's outlook depends on the US inflation report.