Fundstrat: The price of Bitcoin will reach $200,000 in the second half of 2022
A subsidiary of Fundstrat, an investment advisory firm, recently published an article explaining why it expects Bitcoin and Ethereum prices to reach $200,000 and $12,000, respectively, in 2022.
In a note titled “Digital Assets in the Post-Cyclical World” , FSInsight said Friday that the correlation between Bitcoin prices and the stock market has grown sharply in the last three months of last year, according to Kevin Desk. At the same time, when this digital currency faced the US Federal Reserve’s contractionary monetary policy, it lost a significant part of its value.
Sean Farrell, director of digital currency at the company, said that the correlation is now more pronounced, and with the influx of existing stock market capital into the digital currency market, the correlation between the shares of technology companies with Bitcoin and the digital currency market in general has also grown.
According to Farrell, Bitcoin is still the king of the cryptocurrencies market. According to him, despite the fact that this cryptocurrency has started this year with a lot of fluctuations, in the second half of the year it can reach the price of $200,000.
In addition, FSInsight explained that the Decentralized Finance (DeFi), Non-fungible Tokens (NFT) and other areas of Web 3.0 have brought great growth to the Ethereum network.
According to the report, the value of the Ethereum network is less than its real value compared to other cloud platforms, and this year the price of Ethereum could reach $12,000.
Some market participants are optimistic that Ethereum will change its consensus algorithm from proof of work to proof of stock this year. According to FSInsight, if this happens, the Ethereum network will face a lot of input capital without being affected by the performance of Bitcoin.