Over the years, Ethereum’s price has typically mirrored Bitcoin’s, rising when Bitcoin rose and crashing along with Bitcoin. However, there appears to be an aberration in the current cycle, with Bitcoin price hitting multiple all-time highs while Ethereum has lagged behind. Nevertheless, there remains hope that ETH will eventually catch up with BTC, with Fundstrat CIO Tom Lee predicting that ETH could replicate the Bitcoin supercycle.
Tom Lee talks about Ethereum producing a Bitcoin-like supercycle
Fundstrat has become a well-known name in the cryptocurrency industry, and its CIO, Tom Lee, has made an even bigger name for himself with his commentary and predictions regarding digital assets in this space. One of Lee’s recent updates, who has always been bullish on Ethereum, addresses the long-standing “Bitcoin Super Cycle” and why Ethereum could repeat it next.
This post describes Fundstrat’s customers’ foray into the world of Bitcoin and cryptocurrencies when they were first recommended in 2017. Lee revealed that at the time, Fundstrat advised investors to allocate 1% to 2% of their investment portfolios to Bitcoin.
Although BTC prices were “high” at the time, they were very low compared to today. However, in the eight and a half years since then, the digital asset has outperformed, with customers holding BTC achieving a 100x return on holding.
Returning to the current situation, Lee explained that Fundstrat is predicting another supercycle, but this time it won’t be Bitcoin. Ethereum has become the company’s new favorite, and the CIO believes ETH could follow the same trajectory as Bitcoin.
Lee explains the reason for this: “Cryptocurrency prices are discounting a huge amount of the future, so doubts are creating volatility.” This means the company expects prices to be much higher in the future than they are now, and Ethereum could be a big beneficiary of that expansion.
However, he cautions that the path to this supercycle will not be easy. In Bitcoin’s case, it took Bitcoin’s price to drop more than 50% on six different occasions and crash by 75% on three different occasions to complete its 100x rise. In this way, “the path to the top is not a straight line,” but the way you hold it is the key.
Considering the current price of Ethereum and a similar time horizon as Bitcoin, a 100x increase would take Ethereum to $300,000. However, in terms of time, this would happen sometime in 2033.
Featured image from Dall.E, chart from TradingView.com
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