Bloomberg views the Ethereum closure as speculative, but notes that the fundamentals are driving the appreciation of Bitcoin.
In your August crypto outlook Bloomberg was unimpressed by Ethereum and called its rally “speculative”.. However, the Post claims that Bitcoin’s (BTC) rise rests on solid foundations:
“Ethereum has extended last year’s highs to become one of the top performing crypto assets in 2020. However, given the favorable demand-supply conditions that support Bitcoin, we view its recovery as more speculative.”
The competition from Ethereum
The report notes that Ethereum “faces stiff competition from similar crypto platforms and around 6,000 tradable currencies”. On the other hand, Bloomberg remained consistently bullish on Bitcoin, pointing to its gold-like properties and increased institutional demand.
The success of the DeFi room has led to the appreciation of Ether, with some comparing it to the ICO boom. The more intelligent the contract platforms become, the tougher the competition becomes. When it comes to the world of professional investors, Ether doesn’t have a clear selling point like the limited supply of Bitcoin.