Transcription
A few months ago, everyone thought that Ethereum was going to go down to zero. It had massively underperformed Bitcoin and a bunch of other coins for pretty much this whole cycle. And people thought I was crazy to still be massively bullish on Ethereum and showing you what I have, like showing you my Ethereum losses. They were down a lot, but then ultimately they caught up, and I was always bullish on Ethereum.
So now, when Ethereum has actually caught up and passed Bitcoin in year-to-date gains, and it just made a new all-time high, everyone is trying to figure out just how much higher can Ethereum actually go. So that is what I will be looking at today. Ethereum is actually presenting what I think is a very interesting opportunity right now because there actually are a lot of unique factors affecting it that not everyone is aware of, and I will be covering all of those and everything else you need to know, including who is actually buying billions of dollars worth of Ethereum, the current state of Ethereum as a chain, some upcoming catalysts, and how I am personally positioned to take full advantage of this opportunity.
Welcome back, everybody. My name is Chris, bringing you cryptocurrency videos every day, teaching you how to navigate this market. If you're new to the channel, then make sure to subscribe and activate the bell right now. So, with that said, let's get right into it.
So, first, to be clear, I do actually have some Ethereum exposure. And I have it because I am using a custom-built trading strategy to trade Ethereum. So many of you guys who have been following my channel, you already know about this. But yes, I do have, for full transparency, I do have Ethereum exposure. I prefer to have my Ethereum exposure this way because it makes money when the price goes up, as usual, but it also creates me profits from the short-term volatility, and it will help me get out before the massive drops that come during the bear market.
Currently, these strategies are actually up a lot. So my first Ethereum strategy is up almost half a million dollars on an annualized basis, 228%, or like, yeah, close to somewhere between, usually fluctuates, like 220 up to 250% yearly. So that's absolutely amazing. And I do have a second one also, which is also up a lot, uh, about $65k on an annualized basis, about like between 500, fluctuates somewhere around 500% in annualized gain. So, this is absolutely amazing, and it means that I'm outperforming just holding Ethereum, and I'm taking advantage of the volatility. I will talk more about this, uh, later on in this video if you're interested, as well as how you can also, uh, use my strategy if you weren't or if you want to do that.
So, but first, let's look at Ethereum. And, um, the first thing we need to actually look at when thinking about Ethereum's potential is really the state of the chain itself and what is being built on top of it. I know what some of you are already thinking right now, and that is how mainnet Ethereum can actually still be slower and more expensive than other chains like Solana, Sui, Avalanche, or many other chains. And yes, that is actually true, and that is a good question. But what is also true is that it does not matter to TradFi, and that that is actually where the massive Ethereum demand is coming from right now.
As the CEO of the biggest Ethereum treasury company explained here, the number one thing that Wall Street needs from a chain is reliability. And Ethereum is the largest chain with smart contracts that has never had any downtime. Now, this doesn't mean that scaling doesn't matter at all, just that it isn't the core focus of the biggest financial entities adopting it. Ethereum has already scaled a lot with its layer twos like Arbitrum and Optimism, and future upgrades are already planned to help scale the layer 1 as well.
Something else to note related to upgrades that is actually a positive is that Ethereum has now reached a state where it no longer needs major game-changing upgrades like we saw in the past with, for instance, the switch to proof-of-stake. That kind of major upgrade was good for forming a big short-term narrative, but TradFi is looking for somewhere to build that already works reliably and that will see small positive changes over time. That is exactly what Ethereum can actually give them.
So, over the past year, Ethereum has seen some of the largest institutions start building on it, and BlackRock launched their first-ever tokenized money market fund on Ethereum. JP Morgan recently announced that they will be launching their own stablecoin on Base, and which is of course an Ethereum layer 2, and Robinhood is currently developing their own layer 2 for trading tokenized assets as well. And the list goes on, as we keep seeing more and more headlines like this happening every single day.
Now, let's get into who specifically has been behind the massive uptrend for Ethereum. Starting with a look at Ethereum treasury companies. These are companies that saw what Michael Saylor did with Bitcoin a while back and how successful it has been, and have decided to use the same strategy, but instead, they're using it for Ethereum. Essentially, these companies raise some initial capital in exchange for shares, then use that capital to buy Ethereum, which gives the company some underlying fundamental value. These companies then generally try to continue raising capital to increase their Ethereum holdings by issuing more shares of the company and then selling them on the open market, as well as occasionally directly to institutional investors.
There are three Ethereum treasury companies that have done very well so far, and those are Bitmine, Sharink, and the Ether Machine. Together, they have accumulated over $2.6 million Ethereum worth around $12 billion. These companies have deployed billions of dollars of cash into the open market to accumulate these, uh, Ethereum, but it has had an even larger effect than many people expected due to the speed at which these companies have been buying. Bitmine has been the fastest and largest buyer, as they have accumulated over 1.5 million Ethereum in around a month and a half.
One of the big reasons that they have done so well is due to the chairman and spokesperson Tom Lee, who was already very well known within TradFi. His connections have allowed him to get a lot of coverage and publicity for, uh, his Ethereum investment thesis and the narrative for why he is so bullish, and that has in turn attracted a lot of new TradFi buyers. Put simply, his thesis is that Ethereum has been solidified as the chosen chain for the traditional finance system to migrate to. And with the SEC pushing Wall Street on-chain, the time to position for that trend is right now. That is why Bitmine has been buying as much Ethereum as they can, as quickly as possible. And it is also why they just filed, less than two weeks ago, to increase their available shares to issue by $20 billion, which is absolutely insane.
Obviously, $20 billion is a huge amount of money, but let's look at some of the comparisons to really get a grasp on how big of an effect this could actually have. For reference, Saylor has invested about $46 billion into Bitcoin over the past 5 years. And in that time, Bitcoin has gone from $10K to $120K. However, Bitcoin is a much larger and more liquid asset than Ethereum. And this is the crazy thing. Even if Bitmine manages to raise the full $20 billion, they will still likely be, uh, investing this in a span of months instead of years, as they already spent their first several billion dollars in less than two months. The way they raise and invest the capital also helps increase the, uh, strong and steady uptrend that we have been seeing for Ethereum. This capital is not raised all at once, but rather they issue a portion of the new shares day by day and sell into demand on the open market. Because of this, we see something like, uh, $50 million to a few hundred million of Ethereum purchased regularly, which helps support the price very well.
And while this $20 billion filing from Bit has been the largest, the other existing treasury companies, as well as new ones being created, continue to supply significant demand as well. For example, on Friday, we just saw Ezilla, which Peter Thiel has made a large investment into, announce that they are increasing their common stock offering by $10 billion. So, just between them and Bitmine, there is up to $30 billion of new demand for Ethereum, which is most likely going to be purchased in a smaller amount of time compared to what Michael Saylor has been doing, which has been going on like for over years already.
So, moving on. Spot Ethereum ETF buyers have started to generate massive demand of their own as well. The Ethereum ETFs had a fairly slow start when compared to the Bitcoin ETFs, but over the past several months, they have been seeing a crazy amount of inflows. This ETF demand comes from a variety of TradFi buyers, ranging from institutions to individuals. And something important to consider when looking at this demand and trying to understand why it's been so strong is how TradFi investors are thinking. After criticizing and avoiding Bitcoin for so long, they have now seen it become fully integrated into the traditional finance system and provide massive returns. Tons of people watched this happen but didn't buy and missed out. So now, what we're seeing, and I've been talking about this for a long, I talked about this like a year ago, and I said that the institutions, they are going to try to catch up by buying Ethereum, and we're seeing this. People are feeling like Ethereum is still undervalued, and they can still get in for Ethereum. And Ethereum is also seeing the same kind of integration as Bitcoin has been doing here from TradFi. So that is absolutely amazing, and, uh, this is like the FOMO that we are used to seeing from within crypto during previous cycles, but it's just coming on a much bigger scale than ever before.
So, before we get into a bit more of a speculation as to how high Ethereum could actually reach during this cycle, let me explain how I'm taking full advantage of these massive Ethereum moves. And that is with my custom strategies that I'm using on my favorite exchange, which is Pionex. I have been using my trading strategies with Ethereum for a long time now. And as you can see, they have done a very good job, and I expect them to continue to do so. As I said earlier, you're seeing hundreds of percents of yield here, and without having to time the top, without having to time the bottom. Not financial advice, by the way, guys. Nothing in this video is financial advice, but this is my favorite way of trading, over half a million dollars worth of, uh, gains here on my Ethereum strategies.
If you want to use my exact strategies along with me, all you need to do is go to the description and sign up to Pionex, claim the deposit bonuses, and then click this link right here to start the strategy. And if you want to learn more about how my strategies work, how I've used them to make millions already during this cycle, publicly, transparently, showing you everything from when I open them and every single day here on my channel, and how you can also trade over 180 other different altcoins with them, you can check out this video link here at the top of the description where I go over all of the details you need to know.
Because this is a situation Ethereum has never been in before, it isn't really easy to predict exactly how high it can go or how long this rally could last. But I have a few charts that we can look at as to try to help with some price speculation. Up first, I actually have the Bitcoin chart, and that is because Tom Lee of Bitmine has been using this scenario of Bitcoin in 2017 to describe what is happening to Ethereum right now. Back then, Bitcoin had reached around $10,000, and it was finally started to become a mainstream asset, and since then, it has done over 10x. Tom Lee thinks we could see something similar now for Ethereum and has been putting billions of dollars behind that idea. So, it's safe to say he is pretty confident.
Another chart from the past that we can consider is the Ethereum to Bitcoin chart. During the previous cycle, this ratio peaked at around 0.088. Okay, so 0.088. If Bitcoin were to remain flat while Ethereum returned to that level, that would imply an Ethereum price of over $10,000. But if we were to continue to see such bullish conditions for Ethereum to move that high, it's likely that Bitcoin would also continue to trend upwards. So the actual Ethereum price at 0.088 could be even higher. For example, if Ethereum reaches that level when Bitcoin was at $150, or let's say, I mean, let's say that Bitcoin is at $150 or $200K and Ethereum reaches that level, then the Ethereum price would be at, uh, $13K, about more or less $13.2, or $17.6 if we reach $200K.
So, while I'm sure we would all love Ethereum to, uh, go that high, and who knows, maybe someday it will, it is important to take into account the key levels at which some people likely plan to take profits, as those can also turn into massive resistance levels. If Ethereum continues up in the short to midterm, the first thing we really want to see is for it to stay above the old all-time high and turn that into support, and then break above the psychological level of $5,000. If Ethereum can clear and confirm those levels, that would be the signal for real price discovery to begin. And then the next major milestone for Ethereum would be at a $1 trillion market cap, which corresponds with an Ethereum price of about $8,300. Then a bit above that would be the $10,000 level. That is a huge psychological level, actually, and it's been kind of a dream target for a lot of Ethereum holders since many, many years back. In the past, we saw $10K as a very major and challenging level for Bitcoin as well. So, the same would likely hold true for Ethereum.
Lastly, beyond $10K, the biggest target would of course be flipping Bitcoin. This is hard to put a price on, as any conditions that would lead to Ethereum multiplying that many times would almost certainly cause Bitcoin to push higher as well. But for reference, if Bitcoin somehow remained flat while Ethereum pumped to flip it, Ethereum would need to hit around $20,000. While a $20,000 Ethereum already sounds, uh, pretty crazy, I will point out that there are people who are even more bullish, including Tom Lee and Bitmine, who have been publicly making predictions for Ethereum to reach as high as $100,000 in the long term, which would make it the second most valuable asset in the world, only behind gold.
Now, as a final note, I know that some of these price targets may sound impossibly bullish, especially if you have been around in crypto for a while and you remember when Ethereum was trading even below $100. But what you need to realize, the main point that I'm trying to make with this video is that Ethereum is in a situation it has never been before. If you believe that Ethereum will really fully become the base layer for the financial system of the future, then Ethereum needs to move higher simply due to the fact that Ethereum staking is what ensures the security of the Ethereum blockchain. The more value that is transacted and held on the chain, the higher the Ethereum price needs to be in order for it to be economically secure.
So, let me know what you think about these predictions. Let me know what you believe that Ethereum is going to reach. And I will see you guys in the next.