A simple analysis shows that Bitcoin may reach as high as $253k and Ethereum $22k if it is to follow the 2017 bull run. These estimations are massive and are likely to take the cryptocurrency sector above $8 trillion in total market cap.
The 2017 bull run was a big one as the index rose strongly, gaining over 30 times from its lows in 2016 to get to as high as $20k by the end of 2017. According to analytics website Ecoinometrics, the digital currency has the potential to eclipse even the 2017 bull run itself and that will bring it close to Gold’s total market capitalization in the world i.e. $10 trillion+.
Currently, the premier cryptocurrency is trading 7 times higher than its price near halving (around $9k in May 2020). Back in 2017, the digital asset rose by as much as 20 times from its halving valuation to get to that previous record level. So, if the previous curvature is to be followed, the digital currency can rise to 4.25 times from the current value and reach a mammoth $253k in the process.
Ethereum’s performance relative to Bitcoin’s market trend also shows space for a considerable rally in the near future. Last time around, Ethereum rose more than 120 times since Bitcoin’s rally to cement its place as the second most valuable cryptocurrency in the charts, beating older coins like Litecoin, Ripple XRP and others. This time around, Ethereum has risen around 24 times from its low of $188 around Bitcoin’s halving to as high as $4.6k. If Ethereum continues to rise as strongly as in the previous cycle, it may reach a mammoth $22k valuation by the time this bull run is done.
If Bitcoin does reach as high as $253k, it will need to correct itself to as low as $42,000 in the 2022 bear market to follow the trend and according to this analysis, that will be the price to buy it. Ethereum on the other hand will drop to around $900 by the end of this bear run.
It is highly unlikely according to our independent analysis that Bitcoin and Ethereum will repeat their 2017 performance. This is because in each subsequent bull run, Bitcoin’s bull run gets subdued. For example after the first halving in 2012, Bitcoin rose be around 100 times and after the second bull run, it rose as much as 20 times. So, it is not sustainable for Bitcoin to post a 20 times price increase in every other bull run. So, a more real prediction will be for the cryptocurrency to reach anywhere between $80k-$120 in the coming months and then drop to $25k-$35k in the 2022 bear market.
Image Source: pixabay.com
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