The cryptocurrency market is still trending upward, even after a precipitous pullback from historic highs, Bloomberg said in a new report.
Analysts argue that bitcoin is more likely to resume its upward trajectory to $ 100,000 than to fall below $ 20,000. This, they say, will be facilitated by the release of the market from an excess of speculative positions, while all previously existing fundamental prerequisites remain in place. They describe the current situation as a “bullish crypto market at a discount.”
At the same time, they declare that if the trend continues, Ethereum may enter into direct competition with Bitcoin for the place of the first cryptocurrency. They urge to pay attention to ETH as part of portfolio diversification.
“Both are bullish, but the foundation and areas of application of the second number are important additions to the characteristics of the global store of value one,” Bloomberg writes. “Ethereum faces competition from other cryptoassets and smart contract platforms, but number two has won the race to spread to become the leading platform for digitalizing money and finance.”
Also, evidence of the demand for digital assets, in their opinion, is the growing capitalization of the stablecoin Tether.
“Despite ongoing controversy and harassment from regulators, the growth in market capitalization of the world’s largest dollar-based token serves as a strong indicator of the expansion of the digital asset ecosystem. Tether’s solid performance deserves respect, ”Bloomberg adds.
At the same time, they name the $ 100,000 mark as the next target for Bitcoin as consistent with the behavior of the cryptocurrency after the halvings. Ether, according to their expectations, at least until the end of October, will remain in the range of $ 2,000 – 4,000.
“If Bitcoin catches up with Ethereum in performance in 2021, the first cryptocurrency will head towards $ 100,000. Add to that last year’s decline in emissions, migration of institutional portfolios, Ethereum futures and ETF launch in Canada and Europe, and you will see that Bitcoin has much more potential to head towards to $ 100,000 rather than staying below $ 20,000, ”the report says.
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