Ethereum Is Exploding (And It Could Flip Bitcoin)

0:00 So, Ethereum's exploding. Ethereum catching the attention of major financial institutions which are increasingly building on the blockchain and processing about 24 million transactions daily. The rise of tokenization and stable coin hype also helping Ethereum link stocks. 15,000. I'm just going to sit here and listen. This is crazy because just a couple weeks ago it was trading under $4,000 and then almost overnight it went up like crazy. Now, this is not a random thing that just happened. It happened the exact same day the Federal Reserve hinted at something it hasn't done in years, which is lower interest rates. But here's the thing. This price increase is not just about the Federal Reserve or interest rates. Because behind the scenes, right now, trillions

0:46 of dollars are being positioned on Ethereum's blockchain. from Wall Street building ETFs to now the big one, the ECB, the European Central Bank, is now considering Ethereum for the digital euro. So, in today's video, I want to help explain exactly what is happening to Ethereum because some people like Tom Lee are saying this is just the beginning, that it could reach as high as $15,000 a coin before the end of this year. And some people see Ethereum as the foundation of the next wave of finance, potentially even outpacing Bitcoin in certain areas and maybe one day flipping Bitcoin's market cap and reaching that number one spot. Of course, not everyone agrees that this will happen and there's some big risks,

1:33 too. But in today's video, I want to walk you through exactly what is happening, why Ethereum is going up right now, and where this could realistically go from here. So, with that said, let's get into it. Hi, my name is Henri Jick. Hope you're doing well. Come for the finance and save for Ethereum. Now, full disclosure, I do have Ethereum in my portfolio and right now it represents about 5% of it. So, I'm slightly biased and I have a financial interest in seeing Ethereum do well. So, you should know that. But let's start with the biggest reason Ethereum is going up right now and that is the Federal Reserve. Just recently, Jerome Powell gave a speech at Jackson Hole where he basically admitted that the US economy is showing signs of slowing down and inflation is finally cooling. Now, this was the first time in

2:21 years that he said that interest rates might actually come down at the next FOMC meeting. And just to put that into perspective, the market is already betting its money on that happening. So, I always like to use my favorite tool, the CME Fed Watch tool, which you can look at yourself. And right now, it shows that at their next meeting, which will happen September 17th, that there's a 75% chance that they'll lower interest rates. By how much? By a very small amount, exactly 0.25%. From a range of 4.25 to 4.5, which is where we are today, to a new range of 4 to 4.25%. So again, that's exactly a difference of a very small 0.25%.

3:06 The odds will actually change over time depending on what the Fed is signaling to us. But that's not even the point. The point is that the Fed will start to what economists call pivot and go in the opposite direction of eventually bringing our interest rates lower and lower than where they are today. So that one policy change is huge because lower interest rates don't just help borrowers and homeowners, they also pump liquidity back into financial markets. And that money tends to flow first into what are called risk assets. And those are things like tax stocks, Bitcoin, and Ethereum. The proof of this is, of course, Ethereum going up like crazy on the exact same day that Jerome Pal spoke. That's the strongest single day move

3:52 that Ethereum has seen in over a year. And that's why people are calling this the start of a new risk on cycle. Now, we've actually seen this happen before, though. When money is cheap, speculative assets go up. The only difference this time though is that Ethereum is not as much of a speculative bet as it used to be because it's now becoming the financial infrastructure that banks, asset managers, and even governments are paying attention to. Now, if you believe that Ethereum will continue to go up, here's something else that's really interesting. Did you know it's possible to get exposure to Ethereum without ever having to buy it? That's because the Gemini credit card offers instant rewards on purchases with no annual fee. You use it just like any other card, whether it's gas, groceries, or your next meal out. But instead of points or

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5:23 consisting earning can do. And right now, Gemini is offering a special promo. When you sign up and get approved, you can get $200 after spending $3,000 in your first 90 days. Just click the link in the description down below or go to gemini.com/andre to apply and start earning instantly. You can see the rates and fees in the description for more info. Thank you, Gemini, for sponsoring this segment. And now, let's get back to it. So, there's three main reasons for what's happening right now. First, the major institutions are treating Ethereum the same way they treated Bitcoin when its spot ETFs were approved. And we already saw billions of dollars flow into Ethereum investment products in just the last month alone. And that demand is not coming from small retail investors that are watching YouTube videos. It's coming from

6:09 pensions, hedge funds, and everyday retirement accounts that now have a way to buy Ethereum without ever touching a hardware wallet. And that's powerful because it creates a steady stream of demand. Now, the second reason is adoption of stable coins. Those digital dollars that are used every day in crypto is becoming one of Ethereum's biggest use cases because more than half of the entire stable coin market, which is now worth hundreds of billions of dollars, lives on Ethereum. And that's like having a global payment network built directly on Ethereum's rails. Even central banks are starting to notice how much of this industry is growing. The European Central Bank is exploring the idea of building its digital euro on top

6:57 of Ethereum or possibly Salana. But just think about what that would mean. If Europe chose Ethereum as the settlement layer for the Euro zone, it would place Ethereum in the middle of one of the world's biggest financial systems. And that would be huge. And the third piece of this puzzle is of course the supply. Thanks to the way Ethereum now works, which is proof of stake, staking rewards, and the burn mechanism, there's just less Ethereum available on the open market, investors are moving the coins off exchanges and locking them into staking contracts, which means less coins are available to trade. In fact, the amount of Ethereum sitting on exchanges right now is at its lowest level in about 10 years, which is crazy.

7:43 Take a look at this graph from Glass Note. This blue line represents the amount of Ethereum available to buy on exchanges. It's at about 15 million coins available on the X axis. And the last time we got this low was around 2016. So that's the dynamic we're seeing right now. And when you combine that with billions of dollars flowing through ETFs at traditional exchanges and the possibility of governments building on top of this network and you have this perfect setup for a supply squeeze, less Ethereum available, more people wanting to buy and the price goes up. Now, the next question is where do we go from here? And this is where people start to make these price predictions because on the technical side, Ethereum just broke out of a multi-year downtrend. And some

8:30 people that look at these charts are saying the next target is of course $6,000. Now, that would be a pretty big move even from today's prices. But other people are saying that's just the start. They point to the monthly momentum indicators and they say that that could carry Ethereum to $10,000 or even more. And then you have people like Tom Lee from Funstrat. And what's crazy is he's been pretty spot-on with his predictions. Tom Lee believes that Ethereum could reach $15,000 by the end of 2025. I think that there is a very high probability, I'm going to say maybe even 50% that Ethereum's network value will flip bitcoins. And if he's really going

9:16 to do what he says he's going to do, it actually might reach that price because he says he's going to recreate what Michael Sailor's done with Strategy and Bitcoin, but for Ethereum, an Ethereum treasury company. And that's that flywheel effect of raising money to buy Ethereum, issuing shares to investors at some premium to the net asset value, which makes the stock price go up, which gives him more money to ATM with to buy Ethereum. It's complicated, but if you want to learn about the mechanics of how this will exactly work, you can watch that video somewhere up here after this one. But we're seeing this explosion with Bitcoin right now, and Tom Lee could be the first one to do it with Ethereum, it would not surprise me. But that's not all. If Wall Street continues to put money into Ethereum ETFs,

10:03 especially thanks to the 401k money pouring into the space thanks to President Trump, if stable coins keep growing, and if governments like Europe actually start settling transactions on Ethereum, then you've got this trifecta of institutional demand, real world utility, and shrinking supply thanks to these treasury companies. Now, to put this all kind of into perspective, think about Apple before the iPhone launched. Because back then, Apple was just a computer company. And it wasn't until they created the App Store, which created this whole new economy on top of Apple's platform, that its true value started to show. Ethereum right now could be in a very similar position because for years it's been this

10:49 experimental blockchain used for DeFi and NFTTS and not everyone really liked those applications but now we're talking about banks, asset managers, and maybe even central banks building on top of it. If Ethereum is becoming the app store of money, then maybe the price going to 10 or $15,000 isn't as crazy as it sounds. Of course, that's the best case scenario. So, before you go all in because you watched a YouTube video from some random guy, we also need to talk about the risks and the downsides. Now, for one, Ethereum will always have huge levels of resistance. I mean, that's true for any asset, but if it can't break through, we could easily see a pullback. And traders know this, which is why they're always

11:35 taking profits here. Now, the second risk is, of course, leverage. A lot of people have been piling into Ethereum using borrowed money to amplify their bet. And while that works really well when the price goes up, it also means the market is fragile. We don't know how fragile until we know. So if Ethereum falls a little too far, those leverage positions get liquidated. They sell off, which creates a chain reaction of people selling to cover. Now the third risk, which is of course the big one, is how it got to this point to begin with, which is a macro risk. Right now, everyone is betting that the Federal Reserve will cut interest rates in September. But what happens if they don't? If inflation comes back because of tariffs or if the Fed decides that

12:22 it's too early to pivot, the markets could repric very very fast and risk assets like crypto would feel that pain first. Remember, Ethereum went up at just the hint of rate cuts. So, it will just as easily go down if there's a hint of a delay. And then, of course, there's competition. Ethereum still dominates in things like DeFi and stable coins, but it's not the fastest or the cheapest blockchain, but it is arguably one of the most decentralized among its competitors like Salana. Even the European Central Bank has said they're considering both Ethereum or Salana for the digital euro. So, it's not guaranteed that Ethereum will win this race. That's the downside. So, if you made it this far into the video, here's

13:07 my personal take on this. I think the truth, like always, is probably going to end up being somewhere in the middle. Ethereum could absolutely reach over $10,000. And it wouldn't surprise me, $15,000, maybe if all the stars align with ETFs and governments and institutional adoption, but that's more long-term. But here's the thing, nobody knows the exact number or the exact timing. What I do know is that markets always move in cycles. There will be corrections along the way. There's going to be risks and there will be competition. But the bigger story here, I think, is that Ethereum is not just this experimental thing where pet rock NFTTS and DeFi lives on. It's now becoming part of the global financial plumbing. And when you zoom out, that's the reason people are

13:54 so excited. Not because of this quick price pump that's happening right now, but because Ethereum is slowly turning potentially into the infrastructure that money could itself maybe one day live on. So, instead of betting on short-term prices, which I can't do, my strategy has always been the same, which is to stay invested, stay diversified, and to not let this short-term noise distract me from the long-term goal, which is to smash that like button, and to continue dollar cost averaging. I'd love to know what you think about Ethereum, if you think it holds up at the price that it's at. If it ends up at 6,000, 10,000, 15,000, or we go back down. As always, I hope you have a wonderful rest of your day. Smash the like button. Subscribe if you haven't already. I'd love to see you

14:39 back here next week. I'll see you soon.