Morgan Bennett, an influential cryptocurrency analyst, suggests that Ethereum has the potential to surpass Bitcoin’s market capitalization within the next 2-3 years
Taking to Twitter, Bennett outlined four scenarios that could lead to the “flippening,” referring to Ethereum’s dominance over Bitcoin in terms of market cap.
Drawing upon the long-term trends of both cryptocurrencies, Bennett expressed his inclination towards fundamental analysis while acknowledging the undeniable influence of technical analysis, stating that it is challenging to dispute its significance.
The First Scenario envisioned by Bennett, Ethereum gradually closes the gap with Bitcoin and overtakes it around Christmas 2025. Although there might be a period of heightened volatility initially, Bennett anticipates the market adapting to this transition, leading to a smoother continuation of the trend beyond 2026.
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The Second Scenario posits that the growing prominence of Ethereum is causing unease among Bitcoin holders, thereby diminishing the utility of Bitcoin as a Schelling point asset. Bennett suggests that this situation could result in a decline in Bitcoin’s price and a corresponding surge in Ethereum. A Schelling point asset refers to a cryptocurrency that individuals tend to gravitate toward in the absence of explicit communication or established valuation metrics.
Not a fan of technical analysis but it's hard to argue against long-term trends.
If the trend continues, $ETH will flip $BTC within the next 2-3 years. pic.twitter.com/CSFtnjwgnF
— Mo (@MorganTBennett) June 2, 2023
Third Scenario, a fierce struggle for dominance unfolds as Ethereum and Bitcoin engage in a back-and-forth race, periodically surpassing each other over several months or even years. Bennett suggests that this dynamic would generate substantial trading volumes, heightened volatility, and pique significant interest from external observers. Furthermore, Bennett believes that the broader cryptocurrency market could experience benefits stemming from this event.
The Fourth Scenario envisions a potential downfall of the crypto market, where Ethereum surpasses Bitcoin but subsequently loses its status as the preferred digital gold. Bennett warns that such a scenario would result in a lasting erosion of trust within the cryptocurrency space.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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