Ethereum
Is Ethereum a No-brainer Buy After Bitcoin Halving?
Of course, there’s no guarantee that the same phenomenon will happen for Ethereum in 2024. After all, past performance is no guarantee of future performance. But there are so many use cases for Ethereum that I’m increasingly confident that investors will find new sources of value within its sprawling blockchain ecosystem.
New Ethereum Spot ETFs Launched
The second reason why Ethereum could soar in the post-halving cycle has to do with the impending launch of new Ethereum spot ETFs. The Securities and Exchange Commission officially gave the green light to these new Ethereum ETFs at the end of May. Coincidentally, this happened on the same day as Bitcoin’s halving in mid-April. So it’s only a matter of time before investor money starts pouring into these ETFs, helping to drive up the price of Ethereum.
The story continues
Admittedly, investor demand for spot Ethereum ETFs isn’t as strong as it is for spot Bitcoin ETFs. But as much as $3 billion could flow into these ETFs by the end of 2024. At a minimum, this new influx of money would help absorb any new selling pressure in the cryptocurrency market.
How far can Ethereum go?
The combination of these two factors could propel Ethereum higher over the next 12 months. A growing number of analysts and investors now believe that Ethereum could return to its all-time high of $4,891 by the end of 2025. And, from there, Ethereum could climb as high as $22,000 by 2030, according to investment firm VanEck.
Clearly, there are a lot of elements that need to come together for Ethereum’s value to skyrocket. So keep an eye on how sentiment around the Bitcoin halving evolves and how that influences investors’ perceptions of the value that can be unlocked within blockchain ecosystems. If history is any guide, Ethereum may well end up being the most obvious buy of this Bitcoin halving cycle, just as it was in 2020.
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Dominique Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
Is Ethereum a No-brainer Buy After Bitcoin Halving? was originally published by The Motley Fool