Will Ethereum Hit $10,000 After the Bitcoin Halving in 2024?
With the Bitcoin halving coming up in 2024, everyone’s talking about Bitcoin, the most popular cryptocurrency. But what about Ethereum, the number two crypto? Even though Bitcoin is getting all the attention lately, analysts still think Ethereum has a lot of potential.
Can Ethereum Reach $10,000?
Many people are wondering if Ethereum’s price will skyrocket after the Bitcoin halving. Some predictions say Ethereum’s price will go way up in the next crypto boom. However, these predictions aren’t based on hard facts, unlike predictions for Bitcoin’s price after the halving.
This article will explore whether Ethereum’s price can actually break the $10,000 mark and what factors could influence its price after the Bitcoin halving.
What Could Push Ethereum Over $10,000?
There are a few reasons why Ethereum’s price might climb to $10,000. Let’s take a look at some of the important ones.
The Ethereum-Bitcoin Connection
In the past, Ethereum’s price has often followed Bitcoin’s price because Bitcoin is such a big player in the crypto world. Since both rely on people buying and selling them hoping they’ll go up in value, Bitcoin’s price rise often pushes Ethereum’s price up too, because they’re kind of like teammates in the crypto game.
Another thing to consider is that people can trade Ethereum for Bitcoin and vice versa. So, for example, if the price of Bitcoin goes up, Ethereum becomes cheaper compared to Bitcoin (in a trading market called ETH-BTC). This back-and-forth trading helps keep the prices of these two cryptocurrencies connected.
However, lately, this connection hasn’t been as strong. Over the last year, Ethereum’s price only went up 87%, while Bitcoin’s price jumped over 133%! This shows that Ethereum might not always move in the same direction as Bitcoin.
The Bitcoin Price Surge Effect
As we mentioned before, Ethereum’s price often follows Bitcoin’s price. So, if Bitcoin’s price shoots up, it could take Ethereum to new heights as well. Some people think Bitcoin’s price could reach $150,000, which would be a huge increase. If that happens, the connection between the two currencies could cause Ethereum’s price to reach $10,000, which would be a more than 200% jump from its current price of around $3,400 to $3,700.
Another thing to consider is something called liquidity rotation. This happens when people take profits from one investment and put that money into something else. So, if a lot of people cash out their Bitcoin after a price surge, they might invest some of that money in Ethereum, which could push Ethereum’s price even higher, possibly beyond $10,000.
Ethereum ETFs: Getting Approved or Rejected?
After Bitcoin ETFs (a type of investment that tracks the price of Bitcoin) were finally approved, many people in the crypto world were optimistic that Ethereum ETFs would be next. However, things don’t look so good for Ethereum ETFs right now. An important person at a company that makes ETFs recently said they don’t think Ethereum ETFs will get approved by regulators. This is a big deal because this person’s company was one of the first to make Bitcoin ETFs.
On the other hand, some analysts believe there’s still a good chance, maybe 50% or 60%, that the SEC (the agency that regulates investments in the US) will approve Ethereum ETFs eventually. If that happens, it could bring billions of dollars in new investments from traditional investors who might find Ethereum more interesting because of its special features, like smart contracts, which allow for automatic agreements between people on the blockchain.
Can Ethereum Beat Bitcoin in 2024?
The crypto market is known for its wild ups and downs, so it’s impossible to say for sure what will happen. But there is a chance that Ethereum could outperform Bitcoin in terms of price gains this year. In 2021, Ethereum actually did better than Bitcoin, going up almost 400% compared to Bitcoin’s 66% increase.
Experts also acknowledge that Ethereum has a lot of potential for the future because of its unique features and real-world applications. So, it is possible that Ethereum could outperform Bitcoin in short bursts during the upcoming price rally in 2024. However, it’s unlikely that Ethereum will take Bitcoin’s crown as the king of cryptocurrencies in terms of overall market value and price anytime soon.
Bitcoin Halving and the Crypto Boom
The Bitcoin halving is a big event in the crypto world that happens every few years. It cuts the amount of new Bitcoin created in half. This event is supposed to be a kickstart for a bull run, which is a period when crypto prices go up a lot. The idea is that with fewer new coins being created, demand will stay the same or even go up, which would push prices higher.
Since Bitcoin is the biggest crypto, the halving is expected to affect the whole crypto market, including Ethereum. As the number two cryptocurrency, Ethereum is well-positioned to benefit from this. Analysts predict that crypto prices could reach new highs in the coming months, and Ethereum will likely hit a new all-time high, possibly reaching its $10,000 target.
So, What Should You Do?
This article is for informational purposes only and should not be considered financial advice. The crypto market is very volatile, and prices can go up and down quickly. Before you invest in any cryptocurrency, it’s important to do your own research and understand the risks involved. You should only invest what you can afford to lose.
