The crypto market has been struggling for nearly two full years now to return to all-time high peak prices set back at the height of the crypto bull run, when Bitcoin reached $20,000 and became a household name and altcoins like Ethereum made investors filthy rich.
During that time, Ethereum exploded to over $1,400 per ETH as demand for the asset fueled by the ICO boom caused its value to skyrocket. However, one crypto analyst says that Ethereum price won’t ever come close to the $1,000 mark ever again, even if Bitcoin some day reaches prices of $50,000 or more per BTC.
The Rise and Fall of Ethereum
Crypto assets, like any financial assets, are driven by market dynamics such as supply and demand. With scarce assets like Bitcoin that have low, hard-capped supplies, when demand rises, prices can grow quickly.
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Such was exactly the case during the 2017 crypto bull run, which took the mainstream public by storm and the price of Bitcoin to its all-time high of $20,000.
The public media attention on Bitcoin not only caused demand for the asset to skyrocket, but the price of the asset also followed. And as news of young investors turned millionaires made the airwaves, retail investors sought out to find the next Bitcoin in hopes of striking it rich.
This led to the initial coin offering boom, where new assets were launched regularly as the next big thing. These ICOs were often built on the Ethereum protocol as ERC-20 tokens, and investors bought up ETH to exchange for the shiny new altcoins tokens offering promise and hype.
But once that ICO boom fizzled out and the crypto hype bubble popped, investors were left holding Ethereum that had little use or utility, and the price of Ethereum collapsed from $1,400 to as low as $80.
Morning thoughts;$ETH won’t see prices anywhere near $1000 again.
Even if $BTC goes to $50k.
— Mac ❄️🐺 (@MacnBTC) November 26, 2019