Ethereum and Other Assets Surge; Could a $3 Trillion Crypto Market Cap Be Close?November 10, 2021
Many crypto analysts believe the digital currency space is likely to hit $3 trillion in the coming weeks given how many assets – including Ethereum, Solana and Binance’s BNB Coin – have experienced heavy price surges.
Ethereum and Other Assets Are Pushing Ahead
These, along with several other currencies, have experienced “double-digit” gains over the past few weeks. In addition, bitcoin has been scaling back, which has ultimately given many of the world’s smaller tokens like Ethereum the opportunity to take over.
One of the experts who believes the crypto space is about to get much bigger is Michael Saylor. As the CEO and head of MicroStrategy – a software firm that has established itself as one of the biggest institutional investors of bitcoin over the past year – the company has been accumulating BTC units since August of 2020, and presently owns more than $7 billion worth.
Saylor believes that the $3 trillion market cap could be reached the minute the United States and its financial agencies become open to the idea of a BTC exchange-traded fund (ETF) that is based on physical bitcoin, not just futures. This would ultimately constitute spot trading, and he’s confident the entire market will change once this occurs.
In an interview, he states:
To do that, you need the spot ETF, and once these spot ETFs roll, I think you’ll see billions, then tens of billions, then hundreds of billions, then trillions of dollars flow into them… The right answer is to let investors buy a trillion dollars-worth of bitcoin via an ETF because the ETFs plug into the existing security structure, the existing prime brokerages, and the existing collateral packages.
Not long ago, a bitcoin ETF based on futures technology was released to the public. Provided by Pro Shares, the product began trading on the New York Stock Exchange (NYSE) a few weeks ago to positive reception. The price of bitcoin shot up to roughly $66K – the highest it’s ever been – following the item’s release, though some have stated that futures are inferior products, and that bitcoin can’t go anywhere without spot trading.
Several analysts are confident that prices will continue to surge into the end of 2021. Lukas Enzersdorfer-Konrad – chief product officer at Bitpanda in Austria – explained in a statement:
Intraday volatility is completely normal after such a bullish month, but the higher time frame is looking solid for now. The crypto market is more integrated into the world economy every day, which only shows how important it is for bigger institutions, but on the other hand, is also under pressure from macro events.
2021 Has Been a Good Year for Crypto
Mike McGlone – a senior commodity strategist with Bloomberg – also threw his two cents in, saying:
A melt-up in bitcoin and Ethereum into year-end is likelier than retracement, we believe, after 2021 corrections cleansed speculative positions.
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