367
154 shares, 367 points

Bitcoin hit an all-time high on Wednesday, just one day after the first BTC-linked exchange-traded fund (ETF) began trading on the New York Stock Exchange. The ProShares Bitcoin Strategy ETF (BITO) saw more than $550 million flow into the new futures-linked product on its first trading day. Now, an analyst at Fundstrat Global Advisors says the enthusiasm will push the second-largest cryptocurrency by market cap Ethereum to far surpass its own previous record…

Sean Farrell: Bitcoin (BTC) profits could head towards ETH

Fundstrat’s Head of Digital Asset Strategy Sean Farrell said he expects Ethereum (ETH) to not only exceed the ATH level set in May of around $4,200, but potentially reach up to $10,000. As the new research note highlights, big dollar movements in Bitcoin tend to precede the following peaks in Ethereum.

Farrell says:

What we’ve seen in previous bull market cycles for Bitcoin is Bitcoin leading the rally in general, capital returning, investors taking their earnings and converting to altcoins, the most dominant heavily traded altcoin Ethereum. Frankly, we think a lot of people have overlooked Ethereum by the end of the year, as Bitcoin takes the lion’s share of the headlines.

A $10,000 price call for ETH from Megan Kaspar, Managing Director of Magnetic

Both Kaspar and Farrell point to the same fundamental catalyst for bullish price targets – Ethereum has planned deflationary changes to appear on its network.

Farrell said of the reasons for his anticipation:

You do not meet the average investor who is aware of the latest software updates on the Ethereum network. They recently updated the network with what is called EIP 1559, where the transaction feedollarserine is actually burned, causing a disinflationary effect. And what we’ve seen in the recent NFT spree is what’s happening with their NFT as a whole. What is minted and traded on the Ethereum network has actually led to a rapid increase in Ethereum’s supply burn.

Kaspar has since reiterated its $10,000 price target for the same reason. He predicts that the next remaining network change will have roughly the same impact as three Bitcoin halvings, potentially when it goes into effect around the first quarter of 2022. “Halving” is defined as the Bitcoin block reward paid to miners being roughly halved every four years, as the Bitcoin code dictates. It also historically started a bull cycle for BTC price movements, as it most recently did in the spring of 2020.

Ethereum price analysis

As Farrell’s latest research note highlights, Ethereum, which rises above $ 4000, may encounter these levels:

It should not face much resistance at $4.410, but it should likely surpass it and rally to targets near $4,951 with additional technical forecasts up to $5,826.

Farrell and his team at Fundstrat maintain their year-end forecast of $100,000 BTC

It remains unclear whether Bitcoin’s latest rally will continue to fuel ETH’s momentum. After the ProShares Bitcoin futures ETF began trading on Tuesday, Ethereum rose 9% to $4,100 on Wednesday.

Farrell and his team at Fundstrat also maintained their previous $100,000 year-end Bitcoin price target. And he predicted a potential move up to $168,000 if the historic inflows into the new Bitcoin ETF continue. .


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