Over the years, the price of Ethereum has generally mirrored Bitcoin, rising when the latter did and crashing with it. However, there appears to have been a gap in the current cycle as Ethereum is lagging while the price of Bitcoin has reached several new all-time highs. Nonetheless, ETH is still expected to eventually catch up to BTC, with Fundstrat CIO Tom Lee predicting that ETH could replicate Bitcoin’s supercycle.
Tom Lee on Ethereum staging a Bitcoin-like supercycle
Fundstrat has become a big name in the crypto industry, and its CIO, Tom Lee, is even bigger with his commentary and predictions on digital assets in the space. One of the recent updates from Lee, who has always been bullish on Ethereum, covers the “Bitcoin supercycle” over the years and why Ethereum could be next to replicate it.
The post explained Fundstrat clients’ foray into the world of Bitcoin and crypto in 2017, when it was first recommended to them. Lee revealed that at the time, Fundstrat advised its investors to allocate between 1% and 2% of their investment portfolios to Bitcoin.
The price of BTC, although “high” at the time, was very low compared to its current level. However, in the 8.5 years since, the digital asset has outperformed and customers who held their BTC saw a 100x return on their investment.
Fast forward to the present and Lee explained that Fundstrat expects a supercycle to happen again, but this time, not for Bitcoin. Ethereum has become the firm’s new favorite, and the CIO believes that ETH could follow the same trajectory as Bitcoin.
The reason for this, Lee explains, is that “cryptocurrency prices anticipate a massive future. Doubts therefore create volatility.” This means that the company expects prices to be much higher in the future than they are currently, and Ethereum could be one of the biggest beneficiaries of this expansion.
However, he also warns that the path to this supercycle will not be easy. For Bitcoin, it took the price of Bitcoin to fall more than 50% six times and collapse 75% three times, before completing its 100x rally. So, “the path to the top is not a straight line,” but the key is to hold on.
Taking into account the current price of Ethereum and a similar time frame as Bitcoin, a 100x rally would take the price of Ethereum up to $300,000. However, the timeline would mean this would happen sometime in 2033.
Featured image of Dall.E, chart by TradingView.com
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