First Bull Run with Deflationary ETH

We all know how BTC and ETH historically perform during Bull Runs, but what's different this time?

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ETH Is now deflationary, while BTC remains inflationary

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Historically, ETH has had a much higher inflation rate than BTC, leading to lower price appreciation during bull runs due to greater increase to supply.

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Remember price is a function of supply and demand which is why halving events correlate with price appreciation.

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Dec 2017:

BTC Inflation Rate: 4.39%

ETH Inflation Rate: 10.59%

Inflation Margin (difference): 6.20% in BTCs favor

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Dec 2021:

BTC Inflation Rate: 1.86%

ETH Inflation Rate: 5.20%

Inflation Margin (difference): 3.34% in BTCs favor

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2024 (Post April BTC 2024 Halving):

BTC Inflation Rate: 0.87% after halving, 1.75% current

ETH Inflation Rate: -0.28%

Inflation Margin (difference): 1.15% in ETHs favor after halving, 2.03% in ETHs favor currently

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Conclusion: If ETH demand preforms the way it historically does relative to BTC, price appreciation relative to BTC should be greater this bull run, as this is the first bull run where BTCs supply will be increasing faster than ETHs.

Consider that ETH ETFs will follow when BTC ETFs are approved

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