Why analysts expect Bitcoin and Ethereum to head even higher in the months and years ahead?

Both Bitcoin and Ethereum have seen stellar performances from their 2020 lows, both gaining 140 percent since the “Black Thursday” crash seen on Mar. 12 and 13.

According to David Hoffman — COO at tokenized real estate platform RealT and the co-head of the Bankless podcast and newsletter — there are two fundamental events in the coming months that will act in tandem to be a perfect bull market catalyst:

1 – The Bitcoin block reward halving in 10 days; 

2 – The introduction of Ethereum 2.0 in the summer.

In approximately 10 days as of this article’s writing, Bitcoin will see its inflation rate instantly cut in half by a halving, when the number of coins per block is cut in half by the protocol.

It’s an event that a top quantitative analyst with the moniker of “PlanB” found will give Bitcoin a fair value of around $288,000, over 3,000% higher than the current market price.

This high value was derived by finding that BTC’s market capitalization can be derived by analyzing its inflation rate.

Adding to the bull trend, in a few months, Ethereum developers will roll out Ethereum 2.0. It’s an upgrade that will move the cryptocurrency awake from a mining consensus mechanism to staking, which incentivizes dedicated holders to stake their coins in exchange for rewards.

As Hoffman explained in a recent episode of Bankless, the introduction of staking will strongly decrease the amount of ETH on the open market, resulting in a supply shock that will favor price appreciation.

This was echoed by Adam Cochran, partner at MetaCartel Ventures, who wrote that the introduction of ETH 2.0 will create a massive societal economic shift.

Another trend that could bolster the crypto’s price action in the near-term is that its recent uptrend has been driven primarily by spot buying pressure. This is in stark contrast to previous uptrends that have been driven by traders employing high leverage to open long positions, with the cryptocurrency reeling lower once these positions are closed.

Ready to trade?

It’s quick and easy to get started. Apply in minutes with one of our partner exchanges. Either https://pepperstone.com and https://binance.com have a very simple application process.

Once you set up your account with them, login to https://brozbot.com and create your trading bots.