As a more recent token, ether has further to run than
bitcoin, Morehead told the Reuters Global Markets Forum on Monday, adding that
the latest Ethereum Improvement Proposal (EIP) 1559 upgrade will help it trade
more like a fixed asset.
"You'll see a transition of people who want to store
wealth, doing it in (ether) rather than just bitcoin," he added.
Scheduled to go live Wednesday, EIP 1559 significantly
changes how transactions are processed on the Ethereum blockchain as well as
reduces supply of the ether token.
Migration to the upgraded "Ethereum 2.0" will
reduce ether's mining energy use compared with bitcoin's large carbon
footprint, Morehead said.
The blockchain's use in decentralised finance (DeFi)
applications will also support prices, he added.
Ether, the world's second-largest cryptocurrency, has more
than doubled its price in 2021 to its Monday close of $2,608, compared with
bitcoin's rise of 46% to $39,166.
Ether's market capitalisation was around $306 billion on
Monday, less than half of bitcoin's $737 billion, according to tracker
CoinGecko.com.
Morehead sees bitcoin ending 2021 between $80,000 and
$90,000, and rising above $120,000 within a year. Increased mainstream adoption
could push it as high as $700,000 in the next decade, he said.
Despite recent volatility that left bitcoin 40% below its
April all-time high of $64,895, Morehead said Pantera Capital's funds have
attracted institutional investors who are less "momentum"-oriented
than retail investors, and see current prices as a buying opportunity.
He also sees increased regulatory scrutiny, such as a global
crackdown on cryptocurrency exchange Binance, as a "transition"
phase.
Pantera, which manages $2.8 billion in blockchain-related
assets, has invested in several crypto exchanges including Bitstamp, Coinbase,,
and regional exchanges such as Mexico-based Bitso. -Reuters
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