- Bloomberg is most bullish for Bitcoin and Ethereum.
- Their overall market utility is cited as a driving factor.
- Ethereum remains a key beneficiary of the increased use of stablecoins
The cryptocurrency market took a hit early this year, but the coming months might lead the market toward the light at the end of the tunnel. Bloomberg analysts explain that this is highly possible, and name cryptocurrencies that will lead the bullish takeover.
In its February Intelligence Report, Bloomberg strategists explain why Bitcoin, Ethereum, and Stablecoins are most promising in the near term. Despite all assets, especially Bitcoin, experiencing a turbulent price movement since the year began, Bloomberg is confident that the asset will not only bounce back but that it will also morph into a “global digital collateral.”
“The proliferation of crypto dollars is an indication of the increasing dominance of digital assets, with bullish implications for the greenback, Bitcoin and Ethereum.” the report read.
Further explaining the factors poised to drive Bitcoin’s highly anticipated bounce back, the report points to early adoption days, as well as Bitcoin’s limited supply. These factors remain key drivers of Bitcoin’s continuous upsurge from time to time. Against the increasing number of new cryptocurrencies flooding the market, Bitcoin still has an upper hand, as it is not as speculative of an asset as the newcomers. As such, investors are likely to favor it in terms of adoption.
Going forward, ETH is also a formidable asset to watch out for. Ethereum for one, gets an upper hand, as most stablecoins are issued on the Ethereum network. As Bloomberg noted, the high demand for stablecoins has benefited the price of Ethereum (ETH). As depicted in their Crypto Dollars and Ethereum Chart, there seems to be a “strong companionship between the Ethereum price and proliferation of crypto dollars.”
As the market continues to purge and shake weak hands-off, the aforementioned assets might not be spared in any future bloodbath. However, Bloomberg is certain that their dominance in the market will only be strengthened in due time.
“Bitcoin, Ethereum, and crypto dollars comprise about 70% of the total crypto market cap. Purging 2021’s excesses may continue, but we expect the market cap of these three stalwarts to just keep going up.” — Bloomberg.