Both bitcoin and ethereum could claw their way by into 2022, predicts stock research and market forecasts company FSInsight.
All is not lost for bitcoin investors and evangelists.
The world’s most traded cryptocurrency bitcoin, which has been classified as a volatile asset class, is expected to touch $200,000 in the second half, despite its turbulent start to 2022, predicts stock research and market forecasts company FSInsight, operated by Fundstrat Global Advisors.
In a note, the company said, bitcoin has mirrored the stock market in its performance, when encountered with the likelihood that the Federal Reserve could raise interest rates as early as next month.
“Bitcoin became increasingly correlated with equities toward the end of the fourth quarter of last year and fell when faced with the prospect of central bank tightening,” FSInsight’s Head of Digital Asset Strategy Sean Farrell wrote in a note, as reported by Coindesk.
Farrell in the CoinDesk report cited above, said bitcoin is like tech stocks because of “legacy market capital entering the fold.”
But Farrell remained bullish about the popular crypto token and said, “bitcoin is still king.”
Bitcoin is trading at $43,762 on Tuesday, according to CoinGecko, a price-tracking website for crypto assets. Bitcoin price is up 0.7% in the last 24 hours.
Separately, the note also mentioned that the rise of the price of Ethereum, the second largest crypto by market value, is being led by decentralized finance or DeFi, nonfungible tokens or NFTs and other Web3 proponents.
“Ethereum is undervalued relative to cloud platforms, and ether, which is the native token of the network, could reach $12,000 in 2022,” FSInsight said in its note as reported by Coindesk.
The price of Ethereum has risen 22% since the January crypto flash crash, according to a report by capital.com. Ethereum is trading at $3,061.53 on Tuesday and its price has fallen 2.1% in the last 24 hours, according to CoinGecko.
Web3’s roots are in blockchain, a digital ledger that gives definitive and irrefutable proof of a transaction.
Meanwhile, DeFi allows crypto enthusiasts to do investment and consumer banking their way.
To be sure, NFTs are one-of-a-kind digital objects purchased with cryptocurrencies.
