Merkle buoyant on Ethereum outlook

Merkle Capital expects Ethereum (ETH) to be the biggest beneficiary of strong tailwinds in the cryptocurrency market this quarter, with a possibility that the world’s second-largest crypto by market capitalisation could reach a new all-time high.

- NUNTAWUN POLKUAMDEE

Merkle, Thailand's first licensed digital asset fund manager, said growing global liquidity, upcoming crypto legislation in the US and renewed institutional strategies would provide support to the crypto market during this quarter.

Fund manager Thanalop Preedamanoch said Ethereum is increasingly favoured by investors and analysts as it provides infrastructures for decentralised finance (DeFi) and tokenised assets.

The latest data showed that M2 supply, a measure of global money and cash deposits, has hit an all-time high of US$114 trillion, signalling substantial capital availability.

Historically, both Bitcoin and Ethereum have shown strong positive correlation of 80-90% with M2, especially over midto long-term cycles or a period of around 70-100 days.