Bitcoin is more likely to take off to $ 100k than to dive to $ 20k, analysts say
June 10, 2021 2:37 AM
In his monthly cryptocurrency outlook report for the month of June, Bloomberg analysts estimated that despite the recent plunge, the cryptocurrency trend is still in an uptrend, Allan even judging that “Is on track to reach a six-figure figure in 2021.”
Bitcoin is more likely to climb to $ 100k than to fall to $ 20k
Note that this report brings some hope, as Bitcoin is down more than 40% from its April high, and attempts to rebound are currently blocked by a major resistance zone.
“Bitcoin is more likely to resume its appreciation towards the resistance of $ 100,000 rather than staying below $ 20,000” reads the report.
However, while Bloomberg analysts do not rule out a 6-digit Bitcoin, that does not prevent them from believing that Ethereum has a chance of moving to number one in the cryptocurrency market.
Why Ethereum could move ahead of Bitcoin
The report also underlined the growing importance of Ethereum, noting that cryptocurrency is the premier smart contract platform and hub for thousands of tokens, and deeming it to be “a key element of the digitization of finance. ”
Bloomberg therefore clearly suggested that Ethereum could take Bitcoin's place as number one in the cryptocurrency rankings, as "the trend that appears to be lasting is that Ethereum is gaining market share over Bitcoin."
Note that at the time of writing this article, Bitcoin has a capitalization of 680 billion dollars, compared to 322 billion for Ethereum.
Despite the wide divide that still separates it from Bitcoin, Bloomberg believes that ETH is "in a unique position as a leading provider of virtual shovels amid the cryptocurrency gold rush."
Analysts Optimistic About Bitcoin ETF
Finally, analysts have also been optimistic about the prospect of a Bitcoin ETF in the United States, an event that cryptocurrency experts expect as the next decisive upside catalyst for Bitcoin.
“We think it’s only a matter of time before there are crypto ETFs,” they wrote.
Remember that an ETF on Bitcoin in the United States would allow millions of Americans to access cryptocurrency via their classic trading account, and would ultimately cause a massive influx of fresh money into the market, which undoubtedly constitutes a bullish factor.