The popular pseudonymous host of crypto market analysis show “Coin Bureau” says that if the Shanghai upgrade goes well, “2023 could be a really big year for Ethereum and for ETH.”
According to a report by The Block, at Ethereum Core Devs Meeting #151, which was held on 8 December 2022, a provisional timeline for the completion of the Shanghai upgrade, also known as Ethereum Improvement Proposal (EIP) 4895, was set. This upgrade will enable users to withdraw their staked funds from the Ethereum blockchain, a feature that is currently not available. According to Cointelegraph, “developers will aim for May or June 2023 to launch the Ethereum Improvement Protocol (EIP) 4844 upgrade that will introduce proto-danksharding to the network.”
Last week, Coin Bureau released a video update (titled “Q&A: ETH Predictions, BTC & Crypto Market in 2023!”) and according to a report by The Daily Hodl, the host of the show had this to say about the potential impact of the upcoming Shanghai network upgrade and the overall outlook for Ethereum in 2023:
“When they see that that ETH can in fact be unstaked and easily sold, then it might incentivize them to actually stake themselves. So I really think it could go either way. Now, I wouldn’t at all be surprised if it was slightly bearish in the short term if we do see some selling. But I think the future for ETH is so, so bright, and I think Shanghai, assuming it goes off without a hitch as the merge did, then I think 2023 could be a really big year for Ethereum and for ETH...
“Price prediction, I don’t know… I don’t think we’re going to see a five-figure ETH in 2023, but I think that’s entirely possible. We could, of course see, a flippening, but I’m not sure. I’m expecting very much kind of sideways price action for ETH over the course of next year.“
On 19 December 2022, Mike McGlone, a Senior Macro Strategist at Bloomberg Intelligence (Bloomberg’s research arm on the Bloomberg Terminal”), shared his outlook for Bitcoin and Ethereum.
In the latest edition of Bloomberg Intelligence’s “Crypto Outlook” report, McGlone (and the three contributing analysts he worked with on this research) said:
“It’s been one of the most severe drawdowns in crypto history, yet the Bloomberg Galaxy Crypto Index (BGCI) is still up about 200% since the end of 2019 vs. 20-60% for gold, the S&P 500, the Bloomberg Commodity Spot index and US money supply to Dec 2. The question is how much worse things can get for the space, overdue to cleanse speculative excesses. Our bias is risk vs. reward, with the BGCI tilted toward resuming its propensity to outperform…
“About 70% of the BGCI is Bitcoin and Ethereum, which are notable for definable diminishing supply vs. increasing adoption and demand. Something has to reverse the demand side of that equation, or by the rules of economics, the price should rise over time. A significant dip within an elongated trend is how we expect history to view 2022 in cryptos…
“That the drop in the value of the entire crypto market in 2022 to Dec. 2 — about $1.3 trillion — is roughly equivalent to the market-cap fall of two stocks, Amazon and Google, is indicative of cryptos’ nascent stage. The most aggressive Fed tightening in 40 years is a good reason for the macroeconomic ebbing tide, but 2023 may be about which assets come out ahead as central banks pivot. If they don’t flip to easing, the world may tilt more deeply into recession, with repercussions for all risk assets. Our base case is for an elongated deflationary period, with the crypto market, as measured by the Bloomberg Galaxy Crypto Index, coming out ahead.“
On 19 December 2022, McGlone stated:
“Ethereum’s advances vs. Bitcoin have been unshaken by 2022 deflation in most risk assets and may be gaining underpinnings. At a ratio of about 0.08, the Ethereum/Bitcoin cross rate is the same as in May 2021, when the Nasdaq 100 Stock Index was about 20% higher.
“Our graphic shows the trend of the No. 2 crypto outperforming No. 1, which appeared coincident with the rise of risk assets. This year’s 30% drop in the Nasdaq is part of a receding tide, including about a 65% decline in Ethereum to Dec. 16.
“Migration into the mainstream is our takeaway, and once the dust settles from some reversion in risk assets amid inflation pressures, Ethereum is more likely to resume doing what it has been — outperforming. Annual volatility in Ethereum is about 1.3x that of Bitcoin.“
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