Bloomberg commodity strategist Mike McGlone has, in a series of tweets, revealed that he believes the price of Ethereum ($ETH) could outperform that of Bitcoin ($BTC) and of equities as demand for the second-largest cryptocurrency keeps on growing.
According to McGlone, Ethereum has built a strong foundation over the last few months even amid a wider market crash that has seen the Federal Reserve’s “most aggressive tightening in about 40 years,” which pressured most risk assets. Per the analyst, Ethereum “appears at a discount within an enduring bull market.”
According to McGlone, Ethereum may outperform the flagship cryptocurrency and stocks in the future as demand for it keeps on rising, with growing stablecoin adoption seeing Ethereum’s use case as an on-ramp that “facilitates greenbacks transacting 24/7, with instant settlement and earning interest above eurodollars” growing.
In a separate tweet, McGlone pointed out that Ethereum’s supply has been decreasing since the Merge upgrade saw it move from a Proof-of-Work consensus algorithm into a Proof-of-Stake consensus algorithm. Available data shows Ethereum’s supply is decreasing by 0.06% per year, while before the upgrade it was growing at 3.5% per year.
McGlone added that unless innovation and “related digitalization trends reverse, demand for and the price of Ethereum are more likely to keep rising.”
The analyst has also pointed out on the microblogging platform that the Federal Reserve intensifying its tightening cycle while other central banks follow its lead “despite deflating markets amidst diminishing global GDP in the aftermath of the biggest liquid pump in history in 2020-21” is looking similar to the Great Depression.
Earlier this year, the analyst predicted that Bitcoin was likely to keep on outperforming gold and the stock market. McGlone has notably accurately predicted in November 2020 that the price of BTC would surpass its $20,000 mark and enter a parabolic rally in 2021. Last year, BTC reached a new all-time high near the $69,0000 mark before enduring a significant correction.
Image Credit
Featured Image via Unsplash
