According to a well-known analyst, the world of cryptocurrencies could be witnessing a historic moment. In fact, conditions for new all-time highs for both Bitcoin (BTC) and Ethereum (ETH) have never been more favorable, according to Travis Kling, head of investments at Ikigai Asset Management.
Factors paving the way for BTC and ETH
Several key factors appear to be supporting BTC and ETH’s bullish trend. According to King, the recent approval of spot Bitcoin ETFs plays a crucial role for Bitcoin. These funds provide safer access to Bitcoin for large capital that previously could not easily invest in crypto. With the next halving, which will halve miner rewards, scheduled for April 2024 and expected rate cuts by the US Federal Reserve, BTC’s path to new highs appears to be almost unhindered.
I came to this thesis after watching how last year unfolded, how this year looks like it’s starting to unfold, with previous periods in the 6+ years I’ve been in the business full-time I am active in the crypto industry.
Unpacking this thesis is best done in list format:
– Travis Kling (@Travis_Kling) February 2, 2024
At the same time, according to King, Ethereum continues to benefit from its unique burning mechanism, which saves some of the transaction costs. This reduces the supply and makes ETH more scarce.
Additionally, spot Ethereum ETFs are planned to launch, possibly even in the next few months. The approval of such ETFs by the US Securities and Exchange Commission (SEC) makes the situation for Ethereum just as positive as for Bitcoin, King said.
The bullish scenario explained
Travis Kling emphasizes that while there is debate about the speed at which these new records will be achieved, the path to get there is clear. The supporting factors for both BTC and ETH, from ETF approvals to monetary policy, suggest a favorable environment for significant appreciation. The expectation that the central bank will change course, combined with the continued success of the stock market, is increasing confidence in crypto.
Given these factors, it appears that both Bitcoin and Ethereum have little work to do to reach and potentially surpass their respective all-time highs, says King.
We’ll find out sooner or later whether King’s predictions actually come true. A lot could happen that even King didn’t expect. Still, he says it looks extremely good.