Key Points
- Bitcoin’s value is projected to rise to $100,000 in the second half of the year.
- The outlook for the spot Ethereum ETF is less optimistic.
A prediction has been made by an analyst that Bitcoin will climb to $100,000 in the latter half of this year.
The forecast for the spot Ethereum ETF, however, is not as promising.
Bitcoin and Ethereum Outlook
An anonymous macroeconomist, Luxon, has shared similar expectations to journalist Colin Wu.
Luxon suggested that American investment giants could allocate 1-3% of their assets under management (AUM) in Bitcoin.
This is due to the delay of the Federal Reserve’s rate reduction from May to June or later and the gradual implementation of institutional plans to invest in BTC.
Luxon also acknowledged the underestimated enthusiasm for spot Bitcoin ETFs, which led to an all-time high update before the impending halving next month.
The expert described the positive dynamics as “surprising” given the tight monetary policy and the delay of its easing.
Ethereum ETF
Luxon also predicted that Bitcoin will maintain its leadership in the cryptocurrency market, expressing skepticism about the SEC’s approval of an Ethereum ETF.
Luxon reminded that the regulator’s investigation into the proof-of-stake (PoS) mechanism in terms of security and price manipulation could pose a challenge.
Another potential obstacle could be the department’s interpretation of an asset as a security.
Luxon stated, “The prospects for an Ethereum spot ETF are not very optimistic, therefore, it might be a bullish market solely for Bitcoin.”
The expert suggested that the rotation of capital from Ethereum to Polygon and Solana could occur in the absence of ETFs for the former and an increase in the number of developers for the latter.
In other news, Bloomberg ETF analysts have previously reduced the chances of spot Ethereum ETF approval in May to 35%, with no certain prediction of when approval on ETH ETFs may come.
