Bitcoin and Ethereum soar to new and risky heights this year
Despite the bad events in the world, the cryptocurrency industry had a good 2020. Now, they’re also having a nice start to 2021, especially Bitcoin (BTC) and Ethereum (ETH). The first cryptocurrency has already surpassed the $37k mark, while the second one it’s getting more and more close to its last All-Time-High (ATH), with over $1,200 per unit.
That’s great news for the hodlers, and maybe there is more to come. According to the investment bank JP Morgan, Bitcoin has the potential to reach over $146k in the long term. This way, it’d even surpass gold as an alternative currency.
Of course, this wouldn’t be a very fast event, but a “multiyear process”. Bitcoin would need to rise by 4.6 times its market capitalization before that happens. To reach this goal, the institutional investors worldwide would play an important role in the next months and years.
However, Bitcoin price could reach at least $50.000 very soon, if the market continues like now. As they commented:
“The valuation and position backdrop has become a lot more challenging for Bitcoin at the beginning of the New Year. While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between $50,000-$100,000, we believe that such price levels would prove unsustainable.”
Meanwhile, experts like Ki-Young Yu, CEO of analytics company CryptoQuant, believe that Ethereum is undervalued. Since the last year was full of institutional investors for Bitcoin, Ethereum should receive the same interest this 2021.
Risks for Bitcoin and Ethereum?
Their last ATHs didn’t end very well for a lot of people in 2018, we must say. The first month of that year wasn’t so bad, but they started going downwards from there. They wouldn’t fully recover till the last year and the beginning of this one. However, we’re still not sure what lies ahead.
Several experts in the matter believe that Bitcoin price will just go up from here, and it’s the same for Ethereum. On the other hand, it seems this will be a year full of regulations if the lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple gives away something about it.
For now, they’re not considering Bitcoin and Ethereum as securities (as they now consider XRP), but that doesn’t mean these currencies can’t be affected by other regulations or possible bans. So, it’s important to expect the better but be prepared for the worse as well. This can be a bright year for cryptos, but don’t forget to trade responsibly.
Featured Image by Cindy Lever / Pixabay
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Originally published at https://blog.alfa.cash on January 6, 2021.