Over the years, the Ethereum price has usually mirrored Bitcoin, moving up when the latter did and crashing along with it. However, there seems to have been a deviation in the current cycle as Ethereum has lagged behind while the Bitcoin price hit multiple new all-time highs. Nevertheless, expectations remain that ETH will eventually catch up with BTC, with Fundstrat CIO Tom Lee predicting that ETH could replicate the Bitcoin supercycle.
Tom Lee On Ethereum Staging A Bitcoin-Like Supercycle
Fundstrat has become a prominent name in the crypto industry, and its CIO, Tom Lee, has even more so with commentary and predictions around digital assets in the space. One of the recent updates from Lee, who has always been bullish on Ethereum, covers the ‘Bitcoin supercycle’ over the years and why Ethereum could be the next to replicate it.
The post explained Fundstrat’s customers’ foray into the world of Bitcoin and crypto back in 2017 when it was first recommended to them. Lee revealed that, at the time, Fundstrat had advised its investors to allocate between 1% and 2% of their investment portfolios into Bitcoin.
The BTC price, while ‘high’ at the time, was very low compared to where it is now. However, in the 8.5 years since then, the digital asset has outperformed, and customer who held their BTC have seen a 100x return on holdings.
Fast forward to the presen,t and Lee explained that Fundstrat is expecting a supercycle to play out again, but this time, not for Bitcoin. Ethereum has become the new favorite of the firm, and the CIO believes that ETH could follow the same trajectory as Bitcoin.
The reason for this, Lee explains, is that “Crypto prices are discounting a massive future. So doubts create volatility.” This means that the firm expects prices to be much higher in the future than they are now, and Ethereum could be a major beneficiary of that expansion.
However, he also warns that the road to this supercycle will not be easy. For Bitcoin, it took the Bitcoin price tumbling more than 50% on six different occasions, and 75% crashes on three different occasions, before completing its 100x rally. Thus, “The path higher is not a straight line,” but holding is the key.
Taking the current Ethereum price and a similar timeframe as Bitcoin into account, a 100x rally would put the Ethereum price as high as $300,000. However, the timeframe would mean that this would happen sometime in the year 2033.
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