As the crypto market enters the era of “Crypto 3.0,” Blofin’s predictions shed light on the potential trajectories of Bitcoin (BTC) and Ethereum (ETH). A profound narrative shift has led to a gradual separation between the two leading cryptocurrencies, affecting their correlation and investor perceptions.
Blofin highlights that BTC’s future price largely hinges on macroeconomic conditions and shifts within the crypto market. Interest rates and market share emerge as crucial factors influencing BTC’s performance.
Despite potential positive factors like the approval of spot Bitcoin ETFs, the continuation of high-interest rates and limited external liquidity suggests a moderate increase in the total market capitalization before January 2024.
Bitcoin & Ethereum Price Predictions
Blofin presents three potential scenarios for BTC’s price movement under different conditions:
- Investors have modest expectations, leading to a stabilized market cap between $1.20T and $1.40 T. BTC’s market share remains around 50%, with prices fluctuating between $30,880 and $36,026.
- The approval of a spot Bitcoin ETF boosts investor confidence, leading to a market cap rebound of around $1.50T to $1.60T. In this case, BTC’s price reaches $38,500 to $41,173.
- Interest rate cuts and positive expectations trigger liquidity flooding, leading to a crypto market cap of over $1.70T. BTC’s price could surge to more than $43,700 and potentially exceed $52,500 with a 60% market share.
As BTC becomes the protagonist of the macro narrative, Blofin suggests that ETH should focus on application and profitability. The factors influencing ETH’s price are driven by its new narrative and widespread usage, reflected in changes in the P/E Ratio.
Blofin presents three potential scenarios for ETH’s price movement:
- The Cancun upgrade significantly enhances Layer2 speed, reducing transaction costs and promoting the Ethereum Layer2 ecosystem’s outbreak. Net income increases significantly, leading to average ETH prices of $5,300 to $9,700.
- The Ethereum network’s profit remains relatively stable, with a 25% net income increase per quarter. ETH’s average prices range from $2,150 to $6,500.
- Marginal profit declined despite the benefits of the Cancun upgrade. ETH’s average prices range from $2,050 to $5,400.
Blofin emphasizes that the “divergence” already exists not only between BTC and ETH but also among various cryptocurrencies. As correlations weaken, old analytical and trading strategies may become less effective. However, the era of Crypto 3.0 demands a multi-method approach to analyzing the market and emphasizes the importance of understanding each project’s fundamentals.
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