Bitcoin vs Ethereum: What are the Differences & Will ETH outperform BTC in 2025?

Key Takeaways: 

• The introduction of Bitcoin marked the advent of a revolutionary type of digital currency independent of government or corporate influence. 

• Over time, the recognition grew that Bitcoin’s foundational innovation—the blockchain—had broader applications. 

• Ethereum went beyond using blockchain solely for a decentralized payment system, suggesting its utilization for secure decentralized financial contracts and applications. 

Ether (ETH), the inherent digital currency of the Ethereum network, stands as the second most widely embraced digital token, following Bitcoin (BTC). Given its position as the second-largest crypto by market capitalization, it’s inevitable for comparisons between ether and bitcoin to arise. 

While both Ether and Bitcoin share certain similarities, such as digital currencies traded through online exchanges and stored in various crypto wallets, they also exhibit notable distinctions. Bitcoin is crafted as an alternative to traditional physical or fiat currencies, whereas Ethereum is specifically designed to facilitate intricate smart contracts and decentralized applications. 

What is Bitcoin? 

In January 2009, Bitcoin was launched based on a groundbreaking idea outlined in a white paper authored by the mysterious Satoshi Nakamoto. This concept presented Bitcoin as a digital currency devoid of central authority. Rather than physical coins, Bitcoin relies on balances associated with a cryptographically secured public ledger. 

While Bitcoin wasn’t the initial attempt at creating such an online currency, it distinguished itself as the most well-known in its early endeavors. Consequently, it has earned recognition as the precursor to nearly all crypto that has surfaced in the past decade. 

Over time, the notion of a virtual, decentralized currency has gained acceptance among regulators and governmental bodies. Bitcoin has established its niche and persists alongside the traditional financial system. It remains under consistent scrutiny and debate, yet it is notable. 

With Bitcoin halving approaching next year, miners and BTC holders anticipate the market reaction to go bullish. Bitcoin halving is a predetermined event that occurs approximately every four years, reducing the rate at which new bitcoins are created by half. This process is encoded in the Bitcoin protocol to control its inflation and mimic the scarcity of precious metals like gold. The most recent halving took place in May 2020, lowering the reward for miners from 12.5 to 6.25 bitcoins per block. Halving events contribute to Bitcoin’s deflationary nature and often impact its price, as the reduced supply can create upward pressure. 

Read more: Bitcoin Halving 2024 

Key features of Bitcoin 

• Decentralized in nature means no central authority or government controls it. 

• Transactions made with Bitcoin are recorded in a public ledger called the blockchain. The blockchain is a chain of blocks, each containing a list of transactions. This technology ensures transparency and immutability. 

• The limited supply of 21 million bitcoin coins makes it a deflationary asset. This scarcity is built into the system’s code and designed to mimic the scarcity of precious metals like gold. 

• Bitcoin is mined through powerful computers that solve complex mathematical problems to validate and add transactions to the blockchain. 

Additional Read: Impact of Bitcoin ETFs Approval by the SEC 

What is Ethereum? 

Ethereum, the second-largest crypto, utilizes an open-source blockchain with its native currency, Ether (ETH). It serves as a platform for various crypto, enabling the execution of Decentralized Smart Contracts. 

Founded by Vitalik Buterin in 2013, Ethereum secured funding through a public crowd sale in 2014. Undergoing multiple updates, including the recent Ethereum Shanghai upgrade in April 2023, Ethereum aims to be a global hub for decentralized applications (Dapps). It pioneered the term “smart contracts” and allows programmers worldwide to create censorship-resistant, fraud-free software. 

Ethereum’s Merge transitioned the Ethereum blockchain from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism to create a more energy-efficient ETH network with greater scalability capabilities. Beyond that, Ethereum is also working on various other projects like Ethereum ETFs and Ethereum Virtual Machine to better cater to the developers.  

Key features of Ethereum 

• Ethereum introduced the concept of smart contracts, self-executing contracts with coded terms, enabling automated and trustless transactions without intermediaries. 

• Ethereum is a global platform for decentralized applications, allowing developers to create and deploy applications without centralized control, fostering censorship resistance. 

• The EVM enables the execution of smart contracts, providing a secure and isolated environment for decentralized application computation. 

• Ethereum’s ERC-20 and ERC-721 standards allow the creation of fungible and non-fungible tokens, enabling a wide range of tokenized assets and applications, including crypto and unique digital assets. 

Read More: How to Buy Ethereum in India 

Bitcoin(BTC) vs Ethereum(ETH): What’s the Difference 

MarketCap* and Circulation Supply** as of February 2025. Source: CoinMarketCap 

Additional Read: Ethereum Shanghai Upgrade 

BTC vs ETH – Technical Analysis 

BTC vs ETH | Source: TradingView 

The year 2024 proved to be a remarkable period for both Bitcoin and Ethereum, as both assets experienced significant rallies, albeit at different scales. Bitcoin, the leading crypto, soared from approximately $42,000 at the beginning of the year to an impressive peak of $108,000, marking a gain of over 157%. This rally was driven by heightened institutional interest, macroeconomic factors, and Bitcoin’s narrative as a hedge against inflation. 

In contrast, Ethereum also recorded notable growth, climbing from around $2,300 to a high of $4,100 by year-end—a growth of roughly 78%. Ethereum’s rise was fueled by the increasing adoption of decentralized applications (dApps) and Ethereum-based Layer-2 solutions, which enhanced network scalability and utility. 

While Bitcoin’s rally was larger in absolute numbers, Ethereum’s growth was notable for its utility-driven momentum. Both assets outperformed traditional markets, showcasing their resilience and appeal amid a volatile economic landscape. 

As of February 18, 2025, Bitcoin (BTC) is trading at approximately $95,290, reflecting a slight decrease of 0.81% from the previous close. Ethereum (ETH) is priced around $2,666.21, experiencing a decline of 1.11% over the same period. 

Bitcoin Price Prediction 

Bitcoin has encountered substantial selling pressure in recent weeks, experiencing a drop of over 10%, with the price testing a critical support level at $95,000. This significant decline has raised concerns about BTC potentially breaching this support and heading towards the ascending trend line near $90,000. However, Bitcoin has recently made a strong rebound, hovering above $95,000, a key psychological level. 

Before a potential dip below $90,000, bullish momentum could trigger a recovery, supported by the RSI nearing oversold conditions. Furthermore, the Ichimoku cloud’s conversion and baseline are on the verge of a bullish crossover, hinting at a possible trend reversal. If this momentum continues, Bitcoin could consolidate within the ascending trend line and target $100,000 to $102,000 by the end of the month.  

Additional Read: Bitcoin Price Prediction  

Ethereum Price Prediction 

ETH/USD | Source: TradingView

Following Donald Trump’s 2024 U.S. Presidential victory, Ethereum witnessed a sharp rally fueled by heightened market optimism.  However, amid broader economic uncertainty and global asset downturns, ETH has retraced and is currently trading around $2,666, struggling to maintain support above the $2,700 level. 

At present, Ethereum is trading below the January 2025 Fibonacci pivot and the 50-day EMA, but it continues to hold above the 200-day EMA, suggesting long-term bullish resilience. A potential golden cross formation between the moving averages could indicate an upcoming recovery, though short-term conditions remain bearish. Key resistance levels stand at $3,000 and $3,500, which ETH must break to sustain an upward trajectory. If bearish pressure continues, Ethereum could test the $2,500 support level before any significant rebound.  

Additional Read: Ethereum Price Prediction 

BTC vs ETH: Which is a Better Buy in 2025?  

The Bitcoin vs Ethereum debate continues in 2025, with both cryptos offering unique value propositions. Bitcoin remains the ultimate store of value, often compared to gold, while Ethereum fuels the decentralized application (DApp) ecosystem with its smart contract capabilities.  

After hitting an all-time high of over $109,000 in early 2025, Bitcoin has recently pulled back and is trading around $95,000. Despite short-term volatility, BTC maintains a market dominance of over 55%, driven by institutional adoption and spot Bitcoin ETFs. The 2024 halving event continues to bolster its deflationary appeal, making it an attractive hedge against inflation.  

Ethereum, currently trading at $2,666, has seen price corrections but remains a critical player in blockchain innovation. The Ethereum Dencun upgrade, introduced in 2024, has significantly improved scalability and transaction efficiency, boosting layer-2 adoption. Analysts predict that if ETH breaks past the $3,000 resistance, it could rally toward $4,000 in the coming months.  

Considering which coin one should buy, Bitcoin offers stability and a proven store-of-value narrative, making it a solid long-term hold. 

Ethereum provides exposure to the expanding Web3 ecosystem, smart contracts, and decentralized finance (DeFi). 

For a balanced crypto portfolio, a mix of both BTC and ETH can provide diversification and long-term growth potential. While Bitcoin remains the go-to asset for institutional investors, Ethereum’s continuous upgrades and network evolution make it a strong contender in the blockchain revolution.  

Read more: How to buy Bitcoin in India 

How to Invest in Bitcoin and Ethereum  

Investing in crypto is super simple, safe, and secured with the CoinDCX app. It doesn’t matter whether you want to buy Bitcoin or wish to trade Ethereum price today; we have got you covered.  

Here are the 4 simple steps to buy your first BTC or ETH with CoinDCX.  

• Sign up on CoinDCX 

• Complete your KYC 

• Link your bank account and add funds 
• Buy Bitcoin (BTC) or Buy Ethereum (ETH)