Investing.com – We made new highs in the second quarter and a correction set in. The subsequent recovery caused the ether to rise faster than the bitcoin, which the number 2 in the crypto world rankings owed to the DeFi revolution.
But there is also another emerging blockchain that is fighting for a top position -.
Bitcoin and Ethereum on the way up
All in all, things are looking really good for the crypto market and it is also becoming increasingly obvious what significance digital assets already have as an addition to a balanced portfolio. Bloomberg states in its crypto outlook:
“We see Ethereum and Bitcoin heading towards $ 5,000 and $ 100,000. Portfolios with a combination of and bonds look increasingly bad without the addition of Bitcoin and Ethereum. “
After the correction, the cops are clearly in control again and it is becoming apparent that this will not change anytime soon.
Cryptocurrencies are not worthless after all
Both central banks and politicians regularly hear that cryptocurrencies have no value and that it is just a passing hype. An assumption that is less and less able to withstand a reality check.
On September 7th, El Salvador introduces Bitcoin as legal tender and Panama is already in the starting blocks to launch a cryptocurrency as an alternative payment method.
The acceptance of digital currencies is increasing, as Bloomberg reports:
“Fidelity and Franklin Templeton are two of the larger wealth management companies hiring digital assets … In our opinion, the most likely scenario is that Ethereum and Bitcoin stay on course.”
Bitcoin beats S&P 500
Financial investments always have risks, even well-known ones such as stocks. And it is precisely these that have long been on the drip from the central banks, which pump hundreds of billions of dollars into the markets every month. If this continuous flow of money dries up, the mood in the markets will quickly change. Bloomberg suspects that the effects of tapering on cryptos will be less negative.
“The Bloomberg Galaxy Crypto Index (BGCI) has risen by around 1,000 percent since the end of 2019 and it has great advantages over the. Cryptos reflect a potential revolution in the monetary and financial world, while the stock market is dependent on the monetary policy of the G4 central banks. “
“Both indices involve risks, but in contrast to the S&P 500, the BGCI also contains the Bitcoin. And it is well on its way. It is increasingly accepted as a digital reserve asset. “
The Bitcoin-GoldBond Index has beaten the S&P 500 since 2015. At the beginning of last year, the lead increased further, which is directly related to the extremely loose monetary policy of the central banks. Bloomberg is certain that this trend will continue.
“Gold and Bitcoin have great potential for further price gains. This is especially true if US Treasury bond yields continue their sustained downward trend and Japan and most European countries follow suit. “
For Ethereum, things look even more positive, according to Bloomberg. On the one hand, the ether is the method of choice when it comes to NFTs and, on the other hand, the offer of the freely available ETH has been decreasing since the latest update.
“According to Etherchain.org, between the beginning of August and September 2, around 170,000 ETH were burned … It is also typical of crypto bull markets that Ethereum does better than Bitcoin.”
For the ether, the $ 5,000 targeted by Bloomberg is no further away, only 25 percent. The BTC, however, still has a long way to go up to the mark of 100,000 dollars, almost 100 percent.
From Marco Oehrl