Home News ‘Discounted’ Bitcoin more likely to hit $100K than $20K in 2021

‘Discounted’ Bitcoin more likely to hit $100K than $20K in 2021

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The cryptocurrency market trend is still upward, even after a rapid pullback from historic highs. Bloomberg reported this in a new report. Analysts say Bitcoin is more likely to resume its upward trajectory to $ 100,000 than to fall below $ 20,000. This, according to them, will be facilitated by the release of the market from an excess of speculative positions. While all the previously existing fundamental prerequisites remain in place. They describe the current situation as a “bullish discounted crypto market”.

Ethereum will compete directly with Bitcoin

At the same time, they argue 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 underpinnings and applications of number two are important additions to the characteristics of the number one global store of value”, Bloomberg said.

In their opinion, altcoin, unlike the main cryptocurrency, can be used not only as a “store of value”. Analysts note that Ethereum has grown from an ordinary digital coin into an entire ecosystem. The report emphasizes that at the beginning of June, the altcoin capitalization, according to CoinGecko, is $ 307 billion. It’s almost half of the Bitcoin capitalization ($ 689 billion). Since the beginning of the year, the capitalization of Ethereum has grown by 265%, while the capitalization of the main cryptocurrency is only 22%.

Also in May, Ethereum already surpassed Bitcoin in mining profitability. Last month, revenue from mining the main cryptocurrency amounted to $ 1.45 billion, down 15% from April. During the same period, Ethereum miners earned $ 2.35 billion.

Growing demand for digital assets

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 analysts say.

In general, analysts believe that cryptocurrencies are in an upward trend.

At the same time, they cite 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 dollars.

“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 the launch of ETFs in Canada and Europe, and you will see that Bitcoin has much more potential. Head towards $ 100,000 rather than stay below $ 20,000”, the report said.

A combination of solid fundamentals and technical support keeps Bitcoin bullish for the short term. Thus, according to McGlone, the likelihood of a new large-scale correction remains low.

Consequently, according to Bloomberg, Bitcoin will rebound from its bullish gains over the past few weeks, exceeding $ 40,000. Finding support at this level, it will then rise to $ 100,000.

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