Ethereum’s Rise: Will It Soar to $14k by June? 🚀

by

January 20, X day, and lo and behold, our very own Dennis Liu (@VirtualBacon0x), a general partner at Momentum 6, drops a bombshell like a hot potato in a snowstorm. He predicts Ethereum (ETH) will rocket to $14,000 by the end of 2025. Six months, he says? ETH will dominate the market, leaving Bitcoin in the dust. “Ethereum is about to dominate the market, you don’t want to miss this window,” he writes with a sly grin. “Ethereum has been lagging behind Bitcoin this cycle, but that’s about to change. I believe ETH will shine in the next 6 months.”

Why Ethereum Could Outperform The Market

Despite ETH’s growing adoption, Liu argues that its underperformance relative to Bitcoin is due to “institutional timing.” He says, “ETH is institutionally driven, unlike Bitcoin or retail-favored altcoins. ETFs provide stability and utility, making ETH ideal for institutional investors.” Institutions are waiting for the right moment, and Liu sees 2025 as the year it finally arrives.

Liu points to the US Federal Reserve’s policy shifts as a catalyst for ETH’s growth. Since May 2024, the Fed has been slowing its balance sheet reductions, and a possible pivot toward renewed liquidity injections could occur after the January 29 or March 19 Federal Open Market Committee (FOMC) meetings. “Since May 2024, the Fed has slowed balance sheet reductions, signaling a pivot. A liquidity boost could follow Jan 29 or Mar 19 FOMC meetings. Why it matters: Fed liquidity pumps historically drive ETH/BTC higher.”

Liu also hints at potential pro-ETH sentiments from the Trump administration, mentioning his NFT collections and DeFi platform built on Ethereum. “His NFT collections and DeFi platform are built on Ethereum. Trump’s administration plans to replace SEC leadership, revisiting anti-DeFi rulings. Institutional optimism surged after Trump’s election win in Nov 2024, driving ETF inflows.”

Further emphasizing Ethereum’s institutional strength, Liu points to real-world asset (RWA) tokenization initiatives by major firms like BlackRock and prominent DeFi platforms such as AAVE, MakerDAO, and OriginTrail. “Ethereum isn’t leading meme coin or AI trends – it’s powering serious institutional growth.”

He underscores a notable shift in Ethereum ETF inflows, which turned positive in November 2024 after a period of outflows. “ETFs added $6B in net inflows from Nov to Jan, or 0.76% of ETH supply/month. Institutions are buying more ETH than BTC monthly, signaling growing confidence in Ethereum as an asset.”

Projecting out to 2025, Liu believes ETH could quadruple to $14,000 if Bitcoin doubles to $200,000. “If Bitcoin doubles to $200K, ETH could 4x to $14K, following its historical outperformance (2x on top of BTC). While diminishing returns may limit upside, ETH remains a high-conviction bet for this cycle.”

Summarizing his perspective, Liu stresses that a confluence of factors—from renewed Fed liquidity to potential pro-DeFi policies—creates a near-term window of opportunity for Ethereum. “With ETF inflows rising, the Fed’s potential liquidity injection, Trump’s pro-DeFi stance, and ETH’s seasonal strength, all the catalysts are aligned. Ethereum’s time to shine is now until June. I’d rather be overexposed than miss this opportunity.”

At press time, ETH traded at $106,929. 🤑

Read More

2025-01-20 21:42