Bloomberg analysts predict that Tether will surpass Ethereum to occupy the number-two spot by market cap before 2021 ends. Bitcoin, they forecast, should reach the $14,000 mark achieved during the 201
Bloomberg analysts predict that Tether will surpass Ethereum to occupy the number-two spot by market cap before 2021 ends. Bitcoin, they forecast, should reach the $14,000 mark achieved during the 2019 cycle before December closes.
Ethereum's market value stalled at roughly $30 billion throughout 2019 and into early 2020. The DeFi surge in the past few months lifted that cap to around $43 billion. Tether's growth path stands in stark contrast. At the year's start, USDT was worth $4.1 billion. The token now approaches $16 billion. It has moved ahead of XRP, Bitcoin Cash, and Binance Coin in the rankings, sitting in third place overall.
Sustained buyer appetite for Bitcoin and stablecoins is driving the gains, Bloomberg said. The firm views the climbing demand for stablecoins as a signal for what central banks may build with their own digital currencies. Barring a major disruption, that trend should continue.
Bitcoin demand indicators suggest a test of $14,000 is likely. Bloomberg noted that "some of the leading Bitcoin demand indicators point to revisiting the 2019 high around $14,000, potentially this year." The recent MicroStrategy purchase showed that large firms are starting to treat Bitcoin as a serious asset.
Bitcoin's market cap sits below $200 billion. As Bloomberg put it, "at less than $200 billion, the Bitcoin market is too small for many large institutions, including central banks, to add the crypto as part of their holdings, but if the market cap of Bitcoin increases, it becomes increasingly like a digital version of gold." As the market cap grows, Bitcoin becomes more attractive to institutions.
Fidelity released a separate report reaching similar conclusions. Analysts there called Bitcoin's present market cap a "drop in the bucket" relative to its potential. They contend that institutional capital flowing into crypto could reshape other markets and drive Bitcoin valuations higher.
