Investment research firm Fundstrat is more than doubling its 2021 Bitcoin price prediction, but bets Ethereum will significantly outpace the top cryptocurrency.
Fundstrat’s lead digital asset strategist David Grider says that the investment research firm is raising its Bitcoin price target by two and a half times.
“In our 2021 crypto outlook report two weeks ago we raised our target on BTC from $40k to $100k.”
The firm cites a myriad of macro and microeconomic factors influencing its updated bullish BTC target, some of which include institutional FOMO (fear of missing out), public expectations of a weakening dollar, more regulatory clarity surrounding the asset and an overall strong equities uptrend.
Fundstrat’s forecast for Ethereum is even more bullish than its Bitcoin prediction. Last month, Bloomberg reported that Fundstrat had raised its 2021 Ethereum price target to $10,500.
Grider describes Ethereum as having the ‘best risk-reward ratio’ of all cryptocurrencies. The digital asset strategist goes so far as to estimate that ‘blockchain computing may be the future of the cloud.’
In an interview with Yahoo Finance regarding Fundstrat’s new BTC target, Grider expands upon his analysis regarding why corporations will continue to invest in crypto assets like Bitcoin and Ethereum, noting that support for the sector is motivated by more than a desire for a hedge against inflation or a store of value option.
“…There’s a lot of utility being provided by these networks and it can be very disruptive to some corporate business models… There’s real reasons that you’d want to own some of these crypto assets… as a disruption hedge or as a complimentary way to increase revenue to your business.
How the technology can really be impactful to businesses and what it can do to be transformative… what we’re seeing is with crypto networks these are new forms of an organizational model. it’s kind of like the internet. as more businesses and users join these things the value of them increases and the utility rises. people join because there is really disruptive utility in this technology.”
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