FSInsight Puts Ethereum At $12,000 EOY, Bullish Forecast For Bitcoin

Ethereum bull behind a market chart

Ethereum has gotten a high confidence forecast from FSInsight. The research firm which offers services across a range of investment vehicles to clients including digital assets has said that the second-largest cryptocurrency by market cap is looking at a very bullish year in 2022. FSInsight put the digital asset at more than 250% higher than its present value by the end of the year.

Ethereum At $12,000?

One characteristic of the crypto market is how there can be very high forecasts for the digital assets. This is mostly true during bullish trends, where investors are beginning to gain more confidence in the digit assets. For FSInsight, it takes this a step further as it places Ethereum, the leading smart contracts platform, at $12,000 by the end of the year 2022.

Related Reading | Big Four Firm KPMG Adds Bitcoin And Ethereum To Its Treasury

This is not the first time that ethereum would be receiving such a high vote of confidence but with the time frame proposed by the research firm, it seems FSInsight is expecting the digital asset to continue to make strides in the industry. If ethereum were to hit this price point by EOY, it would be the digital asset would have to grow nothing less than 250% from its current value, which is sitting at a little over $3,000 presently.

FSInsight attributes this expected growth to the use cases of ethereum. Most prominent of these are the decentralized finance (DeFi) space, non-fungible tokens (NFTs), and the fast-growing space that is Web 3 and its development.

Ethereum price chart from TradingView.com

ETH drops below $3,100 | Source: ETHUSD on TradingView.com

It also explains in its report that the digital asset remains undervalued compared to other cloud platforms. Additionally, with the move to the consensus layer (proof of stake), FSInsight sees more capital inflows, irrespective of bitcoin’s performance in the market. This, the report explains, could drive the value of ethereum to reach as high as $12,000 by the end of 2022.

Bitcoin Receives Bullish Outlook

In the note, FSInsight also touches on what it expects from bitcoin alongside ethereum. The outlook for the pioneer cryptocurrency was just as bullish as the research note puts the digital asset as high as $200K in the second half of 2022.

Related Reading | What Crypto Winter? Institutional Investors Pour Billions Into Digital Asset Companies

The research firm justifies this prediction using the correlation between bitcoin and equities in recent times. With the correlation becoming more pronounced, Sean Farrell, head of digital asset strategy at FSInsight, explained that this would cause the asset to soar. A direct result of “legacy market capital entering the fold” the market strategist explains.

Like ethereum, bitcoin would have to grow in multiples just to see a price point like this. From its current value of a little less than $44K, the digital asset is looking at least a 350% uptrend by the second half of 2022 to hit FSInsight’s predictions.

Featured image from NewsBTC, chart from TradingView.com

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.