The August Crypto Outlook by Bloomberg revealed that the Bitcoin rally is more trustworthy than that of Ethereum, which is said to be more speculative.
Bloomberg recently released its August crypto outlook report, which reveals that the Bitcoin (BTC) rally is based on fundamentals, unlike Ethereum (ETH). According to the report, the Ethereum rally is speculative while solid foundations back the rise in Bitcoin.
Bloomberg releases a monthly publication called Bloomberg Crypto Outlook. In the August edition, the media company expressed some disbelief in ETHs rally, referring to it as speculative. In contrast, the Bloomberg publication was more positive about Bitcoin and the recent increase in the king coins price:
Ethereum has extended last years highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.
Bloomberg Speaks on Price Increase in Ethereum and Bitcoin
Contrasting ETH and BTC, Bloomberg pointed to the gold-like attributes that Bitcoin possesses and the high demand from institutional inventors. Bloomberg believes that these qualities play significant and positive roles in the increase in Bitcoins price. However, the publication revealed the reason behind the description of Ethereums rise as speculative. The report showed that Ethereum battles with plenty of competition from similar crypto platforms and about 6,000 tradable coins.
In addition, data from DefiPulse.com revealed that DeFi hit all-time-high, a total locked value of $4 billion. As a result of this recent growth in the DeFi space, Ethereums value has appreciated. Even some analysts compared the value appreciation to the previous ICO boom.
At the beginning of July, ETH traded at $225.5 and the price has surged significantly since then. According to CoinMarketCap, ETH is presently trading at $395.23 with a market cap of over $44 billion. Coincidentally, the increase occurred at the time Ethereum celebrated its fifth anniversary ...