Despite recent turmoil in the crypto markets, Bloomberg is bullish on both Bitcoin and Ethereum.
In its June Bloomberg Crypto Outlook, the news outlet finds that both the number one and number two largest crypto assets by market cap have bullish paths ahead.
According to Bloomberg senior commodity strategist Mike McGlone, Ethereum is steadily moving up, eyeing Bitcoin’s market cap and the flagship cryptocurrency itself is much more likely to continue moving toward $100,000 than to consolidate below $20,000.
“Number two Ethereum is rapidly moving toward number one market-cap status and has been a top driver of the Bloomberg Galaxy Crypto Index in 2021. Bitcoin is more likely to resume appreciating toward $100,000 resistance rather than sustaining below $20,000.”
The firm notes that as Ethereum gains on Bitcoin’s share of the market, the asset’s 10-day average trading volume has doubled since the start of 2021, edging on 80% of Bitcoin’s 10-day average trading volume.
While Ethereum competitors have managed to perform well this bull cycle, Bloomberg reasons that Ethereum has been able to win “the adoption race as the go-to for digitalization of money and finance.”
Although Bloomberg believes Ethereum could be on the way to overtaking Bitcoin’s market cap, the business news outlet does estimate that the asset may range for a while between $2,000 and $4,000, the high end of which will likely act as strong resistance for ETH.
Bloomberg also believes that Bitcoin’s recent retrace toward the low $30,000 area is actually a sign of an extended bull market that will lead the top cryptocurrency to the $100,000 level. Bloomberg argues that Bitcoin is hitting “layers of support” at around $30,000.
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