Bloomberg analyst: Bitcoin may boost the price of Ethereum to $100,000

特邀专栏作者

2021-08-10 15:30 (UTC+8)

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"If Bitcoin catches up to Ethereum's performance this year, the price of the largest cryptocurrency will be close to $100,000".

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"If Bitcoin catches up to Ethereum's performance this year, the price of the largest cryptocurrency will be close to $100,000".

TEXT: YASHU GOLA

Compiler: Zion Editor in charge: Karen

Original title: "Bloomberg analyst asserts: Ethereum may pave the way for Bitcoin to rise to $100,000", author YASHU GOLA

Ethereum (ETH) has outperformed Bitcoin (BTC) in the market so far this year, rising more than 320%, compared with Bitcoin's return of 54%. However, according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, Bitcoin could soon catch up to Ethereum’s gains, which could even push its price towards $100,000.

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Source: Bloomberg Intelligence

While McGlone didn't detail the factors that have allowed bitcoin to match ethereum's yearly gains, his previous reports on the cryptocurrency mentioned catalysts that could drive bitcoin's price into the six figures. The report states:

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trillions of dollars on the sidelines

Proponents of Bitcoin believe it can compete with the U.S. dollar as the global reserve asset. A big reason is the cryptocurrency’s fixed-supply cap, which, in the view of proponents, makes it a more robust currency than the U.S. dollar (the Fed printed $3.1 trillion in 2020 alone).

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Source: TradingView.com

In an earlier 2021 survey, Goldman Sachs also noted suppressed demand for bitcoin from institutional investors, including pension funds, global sovereign wealth funds and foundations. Still, even though they have trillions of dollars in reserves, the lack of clear cryptocurrency regulations prevents accredited investors from putting those funds into the bitcoin market.

A regulated bitcoin exchange-traded fund would accelerate bitcoin adoption among institutions, according to analysts at Autonomous Capital Management. Furthermore, they said that while investors view bitcoin as a highly volatile asset, its lack of correlation with traditional risk factors will be good news for them.

Analysts at Autonomous added:

competitor of ethereum

Despite Bitcoin's adoption prospects on Wall Street, after peaking at around 73% in December 2020, Bitcoin's dominance has fallen sharply and now sits at 47.17%, reflecting that traders have moved their investments Move to other digital assets.

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Source: TradingView.com

Part of Ethereum’s rise in dominance stems from the explosive growth of NFTs, digital files whose originality and scarcity can be verified by public ledgers.

Additionally, the boom in the decentralized finance space, including lending and other financial services built on top of the Ethereum blockchain, has boosted the adoption of Ethereum among the crypto masses.

Ethereum developers are also taking steps to scale the blockchain. On August 5, Ethereum updated its software via the London hard fork, with the aim of becoming a full-fledged proof-of-stake protocol in the future.

The update also added deflationary pressure on supply, with improvement proposal EIP-1559 bringing fee reduction features. On the first day alone, EIP-1559 burned $2 million worth of ETH.

As of Monday, EIP-1559 had destroyed about $5.5 million worth of ETH, according to data from website Ultrasound Money.

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