Bitcoin could rally to $200K and Ether to $12K this year, says FSInsight
The research firm predicts that BTC could rally to $200,000 due to increased inflows from the legacy markets into crypto, while ETH could soar to $12,000 after Ethereum's transition to proof-of-stake.
Tue, 08 Feb 2022, 12:04 pm UTC
While Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies have significantly fallen from the all-time high they set last year, some experts remain optimistic that the crypto market could rally this year. In fact, a crypto expert believes that major coins such as Bitcoin and Ether could rally higher in the second half of 2022 and significantly surpass their all-time highs last year.
In a note titled “Digital Assets in a Post-Cycle World,” leading independent research firm FSInsight noted that Bitcoin became increasingly linearly correlated with equities towards the end of the fourth quarter of last year, Coindesk reported. Sean Farrell, head of digital asset strategy pointed out that Bitcoin and the broader crypto market’s correlation is even becoming more pronounced with technology stocks because of “legacy market capital entering the fold.”
Bitcoin’s price has declined since the start of 2022 and has, at one point in January, even traded more than 50 percent lower than its November 2021 all-time high. While the crypto has recently recovered and traded at $43,938 at the time of writing, it is still a long way off from last year’s ATH above $68,000.
Despite its current price, FSInsight is convinced that Bitcoin would rally in the second half of 2022 and eventually surpass the ATH it set last year. The research firm predicts that BTC could rally to $200,000 due to increased inflows from the legacy markets into crypto. However, Sean Farrell also warned that there could be some choppiness to the crypto’s price in the first half of 2022.
FSInsight is optimistic about Ether’s (ETH) price movement this year. The research firm expects the massive growth of the Ethereum network to continue this year driven by non-fungible tokens (NFTs), decentralized finance (DeFi), and other Web 3 applications.
Many are looking forward to Ethereum's transition to proof-of-stake in 2022, which could result in capital inflows regardless of Bitcoin’s performance. As a result, FSInsight expects ETH’s price to soar to as high as $12,000 in 2022.
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