The Ethereum ETH/USD network's native token, Ether, is the second most valued crypto behind Bitcoin BTC/USD. An industry executive weighed in on the prospects for these top cryptos and issued a bullish forecast for Ethereum.
Bitcoin Rangebound: The future holds promise for Bitcoin and Ether, driven by different networks effects, Bill Barhydt, Co-Founder and CEO of digital cash payments app Abra, said in an interview with CNBC.
The executive noted that Bitcoin has been moving in a sideways channel in a prolonged manner between $35,000 and $60,000 since February or probably September last year, with slight moves above and below the band.
The apex digital currency, according to Barhydt, has seen a massive cash infusion due to a couple of factors such as traders taking advantage of the fact that they can draw premium by buying Bitcoin through the Grayscale Bitcoin Trust (BTC) GBTC and make a lot of money through contango.
GBTC is the largest publicly traded Bitcoin fund in the world, with more than 700,000 investors and $24.6 billion in assets.
Although none of those factors are holding true anymore, Bitcoin is still holding the middle-to-lower end of the band, Barhydt said.
Bitcoin Vs Ether: Barhydt said different network effects are driving Bitcoin and Ether.
"Bitcoin is driving network effects as a reserve asset that is trustless, immutable, can't be stopped, can't be changed," the CEO said.
While those network effects continue to grow, there were disruptions such as China's mining ban, which likely led to the stalling in Bitcoin prices at the high $60Ks, he added.
Long term, Barhydt is rooting for Bitcoin rising to $250,000.
Meanwhile, the executive said Ethereum is benefiting from different network effects. It is based on the idea of it becoming world's computer – its use for stablecoins, DeFis, NFTs, gaming etc.
The network effects of Ethereum in the short term is more bullish because of these use cases are just starting to play out, the CEO said. If gas fees and transaction fees reduce, all the impediments of the network effects will be removed, he added.
After a little "sell-the-news" with the upgrade in June or July, Ethereum may be headed to potentially to $30,000 or $40,000, Barhydt estimates.
At last check, Bitcoin was nearly flat at $39,120.95 and Ethereum was edging up 0.18% to $2,586.96.
Photo: Coutesy of Ivan Radic on Flickr
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