Bloomberg – Bitcoin Rally is Based on Fundamentals, Unlike Ethereum
A cryptocurrency outlook report published by Bloomberg this month calls Bitcoin’s (BTC) rally as fundamentally driven, while designating Ether’s (ETH) uptrend as speculative.
The report states:
“Ethereum has extended last year’s highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.”
The news publication underscores that Ethereum blockchain is competing with “similar crypto platforms and about 6,000 tradable coins.”
On the contrary, Bloomberg, pointing to gold like characteristics and increasing demand from institutional investors, has a positive view about Bitcoin’s uptrend.
The exponential growth of DeFi domain has contributed to Ether’s value addition, with some analysts comparing it with previous ICO boom.
As smart contracts become advanced, competition is anticipated to become intense. Professional investors still prefer Bitcoin over Ethereum, considering the afore mentioned facts.