Experts see two factors driving Ethereum to $10,000 in catch-up rally with Bitcoin

Experts see two factors driving Ethereum to $10,000 in catch-up rally with Bitcoin

Markets

By

Liam Kelly

6 marca 2024 18:52

Bitcoin's all-time high cranks up pressure on Ether to follow suit.

Investors are counting on Ether ETFs to spur gains.

An Ethereum upgrade is on the way.

Bitcoin just hit a new high, and the wider crypto market is now worth more than $2.6 trillion.

Ethereum’s not been lost in the bullish run-up, rallying more than 65% since the beginning of the year.

It’s impressive, but sitting at $3,809 in late afternoon trading UK time Wednesday, Ether is still 21% below its all-time high of $4,800.

What gives?

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In a word, time.

Szymon Sypniewicz, CEO of crypto onboarding solution Ramp, said it may simply take longer for the market to understand Ethereum’s complexity, especially “compared to the much simpler idea of Bitcoin as digital gold.”

New financial system

Ethereum lovers have long argued the second most valuable blockchain network will be the infrastructure of an entirely new financial system.

Through smart contracts, supporters point to a future with more transparent markets, tokenised versions of popular funds, and faster settlement times.

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Others say it’s only a matter of time before institutional investors take bigger positions in Ether. And the advent of Bitcoin ETFs may be increasing their appetite.

“ETH hasn’t hit its institutionalised hype cycle yet,” like Bitcoin has, Robby Greenfield, co-founder and CEO of payments protocol Umoja Labs, told DL News. “Thus, the vast majority of new inflows from the BTC ETF will naturally lead toward greater buy pressure, along with the upcoming BTC halving,”

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