Bloomberg’s Strategist Mike McGlone Bets on Ethereum Over Bitcoin
As per Bloomberg’s senior macro analyst Mike McGlone, Ethereum, the world’s second-largest cryptocurrency market cap, will surpass Bitcoin during the upcoming bull market. Notwithstanding Bitcoin as well as other risk assets deflating significantly over the previous year, McGlone highlighted in the most recent market outcome document that Ethereum displayed more durability, indicating that it “may be a leading contender to sustain exceeding the pioneering cryptocurrency.”
Since reaching their respective historic peaks in November 2021, Bitcoin and Ethereum have fallen around 76% and 75%, respectively. Interestingly, the yearly volatility of Ethereum is around 1.3 times that of bitcoin. Thus, although Ethereum is still profoundly discounted, McGlone observed that the ETH/BTC crossover rate stayed unchanged in May 2021 at a ratio of 0.08, while the Nasdaq 100 Stock Index was around 20% higher, tipping ETH in the direction of restarting growth if the fluctuation is any indication.
“Our graph illustrates the tendency of the No. 2 cryptocurrency to surpass the No. 1 cryptocurrency, which looked to correlate with the growth of risk assets. The Nasdaq’s 30% decrease this year is a portion of a retreating wave, which includes Ethereum’s 65% collapse through December 16,” he noted.
As per an expert, Ethereum’s resiliency and expected outperformance relative to the leading cryptocurrency is mostly attributable to its acceptance by the public.
“Transition into the mainstream is our most important lesson, and after the dust clears from any reversal in riskier assets in response to inflationary pressures, Ethereum is more probable to begin doing something it has always done — surpassing,” Glone concluded.
Ethereum has emerged as the center of attention over the last year as worldwide cryptocurrency usage has gained momentum. Even though the cryptocurrency was patterned after bitcoin in its initial years, Ethereum took things a step further and currently powers a wide variety of applications via smart contracts, transforming into a favorite among institutions, programmers, and aficionados who view it as a useful altcoin with practical uses.
In the last year, tens of thousands of initiatives and businesses, including PayPal, have registered their activities on the platform in an effort to establish a foothold in the Metaverse, Non-fungible tokens (NFTs), and decentralized autonomous apps (DAOs).
The increase of Ethereum’s market share has mostly reflected its rising demand. Back in 2021, Ethereum’s market share reached 22%, indicating that it might “flip” Bitcoin in the future. Earlier in 2022, Ethereum migrated from a Proof-of-Work (Pow) consensus blockchain to a further environmentally friendly Proof-of-Stake (Pos) consensus blockchain, increasing its attractiveness to governments and organizations globally.
The price of Ethereum reached $1,212 following a 0.36 percent gain over the previous 24 hours. Alternatively, Bitcoin was trading at $16,851 after gaining 0.44% over the same time frame, as per statistics from CoinMarketCap.