logo

FX.co ★ Ethereum will continue to rise in price while bitcoin declines. The end of bitcoin era?

Ethereum will continue to rise in price while bitcoin declines. The end of bitcoin era?

Ethereum will continue to rise in price while bitcoin declines. The end of bitcoin era?

Bitcoin quotes collapsed on Wednesday and haven't been able to renew all-time highs and resume the upward trend for about a month. At this time, the second cryptocurrency globally - Ethereum - continues to show strong growth. Today, its quotes also collapsed, but the losses amounted to only about $400, and the price quickly recovered from overnight losses, unlike the bitcoin rate. All this suggests that cryptocurrencies are still very strongly correlated with each other, but the advantage remains in favor of Ethereum, the demand for which continues to increase. It may be from the bitcoin network that capital flows into the ether network at this time. The broadcast is also supported by the fact that a new hard fork on the network is planned for this summer. However, as with many other cryptocurrencies (in particular bitcoin), many experts believe that that the current price is completely unfair. For example, analysts at the investment bank JPMorgan believe that the real value of ether does not exceed $1,000.

Thus, the actual value of the digital asset is 4 times higher. The bank says the $1,000 value is fair based on the processing power of the network and the number of unique addresses. Thus, to one degree or another, many cryptocurrencies are now heavily overbought and are unreasonably expensive. This is since the American authorities in the past year have been actively pumping up their own economy with trillions of dollars, causing an increase in investments in the stock and cryptocurrency markets. As a result, both markets are inflated and are increasingly called "bubbles" that will burst sooner or later. Investors fear inflation, which, according to the latest data, has already jumped to 4.2% y / y, which is not surprising, given all the same trillions of dollars from the Fed and the US Congress. Nevertheless, ether still has more cloudless growth prospects than bitcoin.

Also, according to the latest information, Ethereum miners have overtaken bitcoin miners in profitability. According to research, daily miners of the second cryptocurrency receive an income of about $77 million versus 67 million from "digital gold" miners. Thus, ether continues to gain in popularity, while bitcoin continues to lose it.

Ethereum will continue to rise in price while bitcoin declines. The end of bitcoin era?

On the daily time frame, you can clearly see that the ether continues to grow. Just yesterday, ethereum once again renewed its peak value, which is now $4,370. Today there was a pullback down, but it does not look as impressive as for Bitcoin. Thus, based on a favorable fundamental background and the beginning of the "altcoin season", the ether can continue to grow. Recall that many crypto experts expect ethereum to rise to $10,000, and this forecast looks more truthful than bitcoin's $100,000 forecast.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Go to this author's articles Open trading account