- A new report from Delphi Digital suggests that ether could surpass bitcoin in the next bull run
- This is due to the fact that ether has recorded higher levels of volatility
End of Crypto Bear Market?
While we are in the middle of a crypto winter that has led to companies closing down and laying off staff, there is still optimism within the industry that it will end soon. One of the most speculated topics in the crypto world is what will happen when it does end. Enthusiasts speculate that bitcoin will return to its $20,000 peak and some even think it will reach a million dollars.
While bitcoin seems to dominate most of the talk about the next bull run, it would seem ether might be the token to take center stage when it does happen.
Ethereum Price Prediction
Delphi Digital, a New York-based firm has released a new study on Ethereum and in the study, it is mentioned that ether has the potential to surpass bitcoin when the next bull run takes place. The reason for this is the apparent volatility that ether and other altcoins hold and also the typical growth trend for altcoins when bull runs take place.
This is outlined in a section of the report called High Beta Risk-Reward. This section shows a chart that tracks the volatility of Ether, along with bitcoin and it is revealed that Ether has actually recorded more volatility in the last six months than Bitcoin.
The report says:
“ETH has also been significantly more volatile than BTC over the last six months. Its 90-day beta relative to BTC is currently 1.5, substantially higher than its historical average (though price history is limited).”
Besides volatility, the net factor to be considered is the price movement of altcoins. Typically, altcoins tend to follow bitcoin’s price movement; when bitcoin rises, they rise as well and when bitcoin falls, they do the same. However, because ether has been seen to be more volatile, it will likely rise higher than bitcoin, at least temporarily, when the next bull run occurs.
While ether has seen downward volatility in the last year and a half, this could easily change.
The report adds:
“We are, however, beginning to see upside volatility pick up for ETH. Given the extremely high intra-market correlations we previously discussed, this is a trend we are monitoring closely as ETH may be poised to outperform if BTC rallies.”
