Here’s How ETH Could Surge Above $5,000 in 2024 After Ethereum ETP Approvals: Bitwise CIO

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Here’s How ETH Could Surge Above $5,000 in 2024 After Ethereum ETP Approvals: Bitwise CIO
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Bitwise Asset Management’s Chief Investment Officer has predicted that the introduction of Ethereum Exchange-Traded Products will drive ether prices to new all-time highs above $5,000 by the end of the year.projected

The anticipated price surge for Ethereum depends on fundamental supply and demand principles. While ETPs do not alter the underlying fundamentals of ETH, they introduce new demand sources. This dynamic was observed with BTC following the launch of spot Bitcoin ETFs in January. Ethereum’s inflation rate over the past year has been 0%, with the ETH supply remaining at 120 million. This equilibrium is due to the consumption of ETH by various Ethereum-based applications, which balances out the daily creation of new ETH. With new demand meeting zero new supply, the potential for price appreciation is high. Additionally, increased activity on the Ethereum network would further increase organic demand for ETH.

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