Frank Holmes – Bitcoin, Ether Will Perform Remarkably in 2021 December 8, 2020 December 8, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsDecember 8, 2020 by Kelly Cromley

Frank Holmes – Bitcoin, Ether Will Perform Remarkably in 2021

As per Frank Holmes, CEO of US Global Advisors, 2021 will turn out to be an excellent year for both gold and cryptos. While having a chat with Kitco News, Holmes stated that he anticipates cryptos such as Ethereum (ETH) and Bitcoin (BTC) to function in a remarkable manner, along with gold. According to him, cryptos are being adopted at a rapid pace due to their inherent core value.

With respect to Bitcoin, Holmes believes that a rising number of people are joining the crypto bandwagon as a continuation of a multi-year pattern:

“The number of wallets, people that are embracing bitcoin, that’s been growing for the past three years. Nice steady growth.”

Even though several people in the crypto sector compares Bitcoin to gold, Holmes stated that BTC is not being driven by identical macro catalysts such as bullion. Instead, Bitcoin’s rally is fueled by the deflationary halving event that happened in May.

He explained:

“If tomorrow, if all the gold mines in the world said we’re going to cut supply by 50%, I can assure you gold will be at $10,000.”

Holmes finished by highlighting the price discovery mechanism in financial market: “It’s a supply-demand function.”

Subsequent to May halving, the quantum of freshly mined BTC arriving in the liquidity pool declined to about 900 per day and the available supply is being rapidly taken up treasury division of large enterprises and institutional investors.

Ethereum, in the meantime, continues to gain from the recent advancements in decentralized finance (DeFi). With respect to total value locked, the DeFi ecosystem is valued at $14.60 billion.

Ethereum acts as the key pillar for DeFi activity. The market cap of DeFi focused tokens is roughly $18.20 billion at the time of writing this article, as per data provided by CoinMarketCap.
Holmes forecasts a “two-standard deviation” rally for gold, pushing the prices by about $400-$800 in the forthcoming year.

He stated: “That would take us from $2,200 to $2,600.”

On Monday, Gold futures rose by $26.40 to $1,866.50 per troy ounce on the Comex, the designated contract market of the New York Mercantile Exchange.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.