✨ Bitwise CIO Predicts ETH to Hit $5000
posted 17 Jul 2024
In a recent note on the company's website, Matt Hougan, Chief Investment Officer of Bitwise, forecasts that inflows into Ethereum-based exchange-traded products (ETPs) could push ETH prices above $5000.
He cautions that the initial weeks may be unstable, with potential outflows from Grayscale Ethereum Trust as it transitions to an ETP. We have explored this subject in detail in a dedicated article on our website.
He cautions that the initial weeks may be unstable, with potential outflows from Grayscale Ethereum Trust as it transitions to an ETP. We have explored this subject in detail in a dedicated article on our website.
Hougan attributes his bullish outlook to several factors. First, he highlights ETH's low inflation rate, suggesting that organic demand could easily absorb new supply.
He also points out that Ethereum stakers, unlike Bitcoin miners, are not compelled to sell their holdings to cover substantial electricity costs.
Furthermore, Hougan observes that 28% of ETH is staked—locked into a contract for a fixed duration—which effectively removes a large portion from the market. Additionally, another 13% of all ETH is bound to other DeFi smart contracts.
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