Another ‘Hundred-Pound Gorilla’ – Bitcoin, Ethereum and Crypto Geared up for Massive Price Earthquake That ‘Gets Closer Every Day’
Bitcoin
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Bitcoin price is up around 20% since this time last month, while ethereum is up 50% as hype over the long-awaited fusion upgrade reaches fever pitch – with an ethereum founder making a surprising ethereum price prediction.
Now, crypto traders are watching closely for signs that ethereum could finally overtake bitcoin as the largest cryptocurrency by value – suggesting a more than 100% ethereum – with one high-profile analyst saying the so-called “flipping” is approaching “by the day.”
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Bitcoin price has been losing ground to ethereum in recent weeks as hype builds around the long awaited … [+]
“I keep hearing people repeat the question ‘wen [sic] freaking out?,” wrote Mati Greenspan, founder of crypto analytics researcher Quantum Economics, in a note. “While there is no guarantee that this will ever happen, just looking at the numbers, it seems like this event is getting closer with every day.”
Many in the ethereum community have long predicted that ethereum’s market cap, currently just under half of bitcoin’s more than $400 billion, will eventually eclipse bitcoin due to ethereum’s smart contract functionality and its wider adoption. Ethereum’s price has fluctuated wildly over the past year amid an explosion in the popularity of digital collectibles known as non-fungible tokens (NFTs) built on the ethereum blockchain.
However, Bitcoin has also seen a surge in demand as investors bet it will eventually become the digital equivalent of gold.
“We like ether and we think it’s a big differentiator,” said Joe DiPasquale, CEO of crypto hedge fund manager BitBull Capital. Fortune. “Bitcoin has been the hundred pound gorilla, but ether is really the other hundred pound gorilla. Everything else follows.”
Meanwhile, analysts predict that the US Federal Reserve – largely blamed for this year’s extreme bitcoin, crypto and stock market movements – could slow the pace of rate hikes “sharply” and “move to policy easing quite quickly”, potentially causing further exchange rate fluctuations.
“Since the next one [Federal Reserve interest rate meeting] is in September, we will likely see increased volatility in the coming month as speculators take their chances,” DiPasquale added by email.
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The Ethereum price has surged higher over the past month, with some predicting that it could challenge … [+]
Ethereum’s fusion upgrade, tentatively scheduled for mid-September, will see the network switch away from bitcoin’s proof-of-work consensus mechanism to the more energy-efficient proof-of-stake. This will allow ethereum holders to “bet” the ether to secure the network in return for newly minted coins instead of relying on so-called miners who use powerful computers to secure the blockchain and verify transactions.
Last week, ethereum’s co-founder and the project’s spiritual leader Vitalik Buterin said he still doesn’t think ethereum’s long-awaited merger upgrade is fully “priced in” — predicting that “when the merger happens, morale is going to go way up.”
