It's all eyes on Bitcoin right now after a super bullish couple of weeks.
Yup, Rocktober is more than living up to the hype.
I'm talking ETF mania,
the highest weekly close in market history,
and actually, by the time of this recording,
we just smashed through resistance,
making an all-time high for Bitcoin.
There's no denying that Bitcoin is king right now.
Dominance is climbing the stairway to heaven,
while the alts are biting the dust on the highway to hell.
But don't worry.
You've got to remember the market cycles.
We're in phase 1 right now,
meaning if Bitcoin is king,
then Ethereum is queen,
biding her time before a face-melting solo in phase 2,
the beginning of a kind of call and response with the rest of the large cap alts.
It's only October and Mercury's in retrograde,
so while your altcoin portfolios might be looking a bit static right now,
you might be feeling under pressure to go all in on Bitcoin,
but you've got to be patient, hold on and buckle up.
This party's only getting started.
Let's get it!
Welcome to BitBoy Crypto!
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My name is Ben.
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In this video, we break down the latest on the Ethereum blockchain,
and I update my 2021 price prediction for Ethereum.
Ethereum is evaporating into the ether right now.
And I'm not just referring to the $2 billion worth that's been scorched since EIP-1559.
No, I'm talking about a massive drop in Ethereum exchange reserves
that can only mean one thing---- an incoming supply shock.
Why?
Because people aren't selling.
In fact, they're taking their precious Ether off the exchanges and saving it for a rainy day.
And that's in spite of the fact that over 97% of all Ethereum holders are in profit right now.
Meanwhile, the whales are hungry.
Check out this data from Coinbase showing a huge spike in outflows last week
to the tune of 400,000 ETH or $1.5 billion.
That's not just a whale.
That's a monstro.
Levels of institutional activity we're seeing right now are huge.
On-chain data shows serious amounts of ETH being moved around,
most likely being split up into multiple wallets.
So when the big boys are scooping up billions of dollars worth of ETH
and putting it in cold storage,
while almost every single token holder is clearly in the green,
well, you don't have to be a genius economist to figure out what happens next.
Speaking of great minds,
someone who's selling their Ethereum right now is TV host and leading candidate
as a potential lizard person,
Jim Cramer.
He recently announced that he'd be selling off a portion of his ETH
as the upcoming launch of a Bitcoin futures ETF in the US could mark a near-term top for crypto markets.
Look.
I'm all in for taking profits,
but then this is the guy who sold almost all of his Bitcoin in June.
June! When we were telling you to HODL!
And who begged his viewers to sell their crypto in light of the Evergrande FUD just a month ago?
I mean, he's got such paper hands, I'm amazed he can even button his shirt.
However, he's not the only crypto pundit weighing in on Ether this week
as Dallas Mavericks owner Mark Cuban said he believed that out of all the crypto assets,
it was Ethereum that clearly had the most upside potential.
I agree with him.
That's because, as he put it, Vitalik will figure it out.
I mean, it's hard not to agree with Cuban on this one.
After all, the human supercomputer, alien and Ethereum founder
recently made Time magazine's 100 Most Influential People of the Year
for his innovation to the rap genre.
Proof-of-stake is hard, but what I do know
is when we learn to shard, we'll change the whole game though.
ETH 2.0 yo!
But let's get serious for a second.
It's hard, if not impossible, not to be bullish as ever on Ethereum
given that ETH 2.0 yo could be coming sooner than expected.
According to Tim Beiko,
the code might be complete by February next year
with a merge to proof-of-stake on the Beacon Chain
likely to follow 4 months later,
which is why the nerds at Ethereum have voted to delay the difficulty bomb until June 2022,
a proposal that will effectively make mining unviable at that time.
This all comes only a week or so
before the Altair upgrade is due to take effect later this month,
the first mainnet upgrade to the Beacon Chain which, according to a recent official blog post,
offers a kind of warm-up in advance to the merge.
So, what's that upgrade going to mean from a user perspective?
Well, as outlined in a recent article from CoinDesk,
not only will ETH 2.0 make Ethereum way more energy efficient,
it will also mark a transition away from economies of scale.
What does that mean?
Well, it'll allow users with smaller investments to become validators on the network,
which, in turn, should reduce centralization and improve security as they become more widespread.
And while the move to proof-of-stake won't necessarily have an immediate impact on gas fees or speed,
it will lay the groundwork for sharding,
which will ultimately see the network load shared across 64 separate chains,
massively increasing throughput and speed,
speeds that can reach as high as 100,000 transactions per second.
In short, the merge is going to be scary stuff for the so-called ETH killers.
Yup, it's hard to believe that this guy created a coin that's going to at least $8,000 this cycle.
At the time of this recording, it just crossed over $4K.
There's no doubt about it.
In spite of the many delays,
confidence in 2.0 remains high as ever,
with a deposit contract now showing approximately $28 billion in ETH being staked.
And zooming out into the wider DeFi space,
Ethereum is capturing a huge 69% of total value locked across all different chains,
totaling no less than $130 billion.
This is all super bullish.
You can be sure that as soon as we enter phase 2 of the market cycle
and money starts pouring into Ethereum,
well, it's going to break---
break free in a serious way.
And, yes, it's still totally possible we'll see the market cap flipping at some point this cycle.
A possible catalyst can be rumors of an upcoming Ethereum ETF.
I know. I know. It's literally been a few days since a Bitcoin futures ETF was approved,
but already people are getting excited about the prospect of the SEC allowing an ETH-TF.
After all, they've already said Ethereum isn't a security,
and while I'm not sure it'll happen that quickly,
it's clearly the next in line.
So much so that the applications with the SEC are currently pending,
including one from Kryptoin and Gemini Trust Company,
who've offered to serve as custodians and hold the trust's Ethereum.
Yup, this isn't even futures ETFs we're talking about.
It's a spot ETF,
which means that given Dirty Gary Gensler is in charge of the show,
I wouldn't all be surprised to see it rejected at the current time.
But here's something to think about.
Forget outcomes.
The hype alone around a possible Ethereum ETF could easily send ETH into the stratosphere
in the coming months.
I'm talking north of $10,000,
possibly as high as $12,000, $14,000, $15,000!
And what if an eventual rejection from the SEC is the killer blow that sends it crashing back down?
A clear-cut case of buy the rumor and sell the news,
which is exactly what happened to Bitcoin back in 2018.
Who knows?
But I can totally see it happening.
Definitely something we'll be keeping an eye on in the next couple of months.
In the meantime,
I'll just say this.
Don't be like Jim Cramer.
And definitely do not sell your Ethereum when it's still off its all-time high.
When this thing pops,
it's going to be like getting full-sized candy bars on Halloween.
That's all I got.
Be blessed.
BitBoy out.