2021 could be a good year for Ethereum as experts are confident that institutional investors will start buying up ETH tokens en masse.
December 28, 2020 | AtoZ Markets – In 2020, bitcoin made a serious leap and went up in price 10 times in 9 months. Investment company Wells Fargo named Bitcoin the best investment asset, and institutional investors continue to buy cryptocurrency en masse.
However, in 2021, the situation on the crypto market may change.
Investors' money will flow from Bitcoin to Ethereum
According to a tweet by Ryan Watkins, an analyst at Messari, institutions will start investing in Etherum in 2021.
CME futures is the writing on the wall.
They wouldn’t launch an $ETH product if there wasn’t any demand for it.— Ryan Watkins (@RyanWatkins_) December 27, 2020
Watkins believes the launch of Ethereum futures on the Chicago Mercantile Exchange (CME) confirms his predictions. According to him, if there was no interest in ETH on the market, then, CME would not launch such a product.
The increased investor interest in ETH is fueled by the launch of Ethereum 2.0 phase zero. Recall that the Celsius company contributed the last 25,000 coins needed to launch Ethereum 2.0.
Institutionals are pushing bitcoin prices up
If Watkins' predictions come true, then in 2021 the price of the ETH token could go up sharply. A similar situation is observed today with bitcoin.
PricewaterhouseCoopers analysts believe that the current rally is primarily due to the availability of a ready-made infrastructure for the arrival of institutional investors. As stated by Henri Arslanian, head of fintech crypto industry and the Asian region in the PriceWaterhouseCoopers (PwC), most of the major holders of Bitcoins regard cryptocurrency as a tool to hedge against inflation risks.
Given the strong pressure from public companies, large funds, and macro investors, Pantera Capital's Morehead believes the current rally is very different from what happened in 2017. According to him, during that period the price reached its maximum only due to speculation. Now bitcoin is being bought with a 5-20 year perspective.
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