After the market crash, Ethereum’s rebound proved to be stronger than bitcoin’s one. In the coming years, Ethereum will also outperform bitcoin in growth rates, experts say.
At the low on December 24, Ethereum fell to $2,172, and on January 26, its price rebounded to $2,694. The rise is 24%. On the same days, bitcoin rebounded from $33,184 to $38,670, that is, by 16.5%. The stronger momentum in ETH could mean that the whales have decided to shift their investments in Ethereum. However, in general, the correlation between the two leading cryptocurrencies remains.
After the rebound, BTC and ETH corrected because of the Fed’s announcement that “soon be appropriate to raise the target range for the federal funds rate.” Fiat markets reacted with a small drop within the correction. The cryptocurrency market is now correlated with the stock market, but the correction of Ethereum and bitcoin turned out to be even more significant than the correction of stock indices.
Analysts are suggesting that we are in for a horizontal trend in the near future because the recent rebound came amidst hesitant buying in the spot market. Marcus Sotiriou, an analyst at UK-based digital asset management firm GlobalBlock, states:
– Short-positioned traders are dominating the derivative market. This indicates that bitcoin’s bounce was driven by [the spot market] rather than derivatives.
In the long term, there can be very strong growth, with Ethereum growing much stronger than bitcoin. This is the opinion expressed by the company ARK Invest, which is led by the charismatic and authoritative Cathie Wood. In the Big Ideas Report, the company’s experts announced a market outlook until 2030.
It is noted in the report that so far, cryptocurrencies have a relatively small market capitalization compared to other major asset classes such as global real estate ($220 trillion), global bonds ($124 trillion), and gold ($10 trillion). Therefore, the market has great growth potential in the years to come.
According to ARK Invest, the capitalization of bitcoin will increase 25 times, the capitalization of Ethereum will grow almost 70 times to $20 trillion, which corresponds to the price of ETH about $180K by the end of the decade. The report notes:
– According to our research, Ethereum could displace many traditional financial services, and its native token, Ether, could compete as global money.