What’s different about this bitcoin rally
How the Bitcoin rally differs from 2017 and what are the prospects for ETH – Pantera
Pantera experts predicted the current bitcoin rate back in April 2020
The company notes the fundamental differences between the current crypto-boom and the 2017 bubble
Pantera estimates BTC may rise to $ 115,000 in August 2021
Pantera Capital compared the current strengthening of bitcoin with the bull run of 2017, and also assessed its own forecasts for BTC and the prospects for the Ethereum course.
Pantera Capital analysts in the January newsletter decided to pay attention to the fundamental differences between the 2017 bubble and the current situation in the crypto market. They also analyzed the dynamics of the MTC exchange rate after the May halving and assessed the potential of Ethereum, considering it underestimated in comparison with Bitcoin..
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“You can’t praise yourself …”
In addition, Pantera Capital did not fail to praise itself a little for the fairly accurate forecasts for the current bitcoin rate, made back in April 2020. Then Pantera experts presented long-term forecasts for the further dynamics of military-technical cooperation, taking into account the impact of the May halving on it..
Source: Pantera Capital
The company proceeded in its estimates from such theoretical aspects as the ratio of supply and demand and its impact on the price. Although the market lagged behind forecasts by 15 weeks in the summer of 2020, the gap subsequently began to gradually narrow. As a result, by the end of December, the BTC market quotations caught up with the Pantera estimates. Moreover, by mid-January, the price of bitcoin was even one week ahead of the forecast..
Source: Pantera Capital
If Pantera’s predictions continue to come true, then on February 15, 2021, one bitcoin could cost $ 45,268. Meanwhile, on August 1, the BTC rate could reach $ 115,212.
It’s different this time
In addition, the company decided to highlight a number of differences between the current crypto boom and the 2017 bubble. So, experts pointed out that this time Bitcoin and Ethereum clearly dominate the market. They now account for about 86% of all market volumes.
Meanwhile, in 2017, this figure was only about 50%. At that time, the second half of the market was formed by “mostly non-functional tokens”. “It’s obvious that new brilliant business ideas simply couldn’t be born 50 pieces every week,” analysts admit..
In this regard, they acknowledge that in 2017 we were dealing with an unconditional bubble generated by ICO fever. Now the market is booming, but not a bubble. Investors have a better understanding of the market situation. Also, an important feature 2020 became active involvement in the crypto space of large institutional investors.
Ethereum is undervalued?
Pantera did not ignore the second cryptocurrency of the world – Ethereum, for which 2020 was also very successful. Company analyst Joey Krug noted that bitcoin dominance index is already at the top of its range, and this could shift the market focus in favor of Ethereum.
In addition, he also mentioned such a financial criterion as the price / earnings ratio (P / E multiple). Its low values traditionally indicate an undervalued asset. In the case of ETH, this indicator, according to Krug, significantly lags behind the growth rate of its use..
Read also: Ethereum price is still underestimated
The Circle also considers the prospects for ETH in 2021 to be optimistic due to factors such as the launch of the updated Ethereum 2.0 protocol, the continued growth of the decentralized finance segment (DeFiDecentralized Finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to an open, efficient and … More) and the imminent launch of futures on ETH CME Group.
At the same time, the Circle urged not to compare Ethereum to Bitcoin, “since digital gold and the DeFi industry are two completely different things”.
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