Not even the present bearish trend of the crypto space could deter FSInsight from predicting an over 400 percent increase in the price of Bitcoin in 2022. FSInsight, a pioneering thought leader in market data, has predicted that Bitcoin will hit $200,000 a coin in the second half of 2022.
The company, which claimed its digital assets research bridges the gap between tech and investment, disclosed this in a note to investors on Monday. It also predicted that the world’s second most dominant cryptocurrency, Ethereum would rise by 385 percent to $12,000 a coin.
The report noted that the crypto space is now mirroring tech stocks. Sean Farrell, head of digital asset strategy at FSInsight said the connection was due to the “legacy market capital entering the fold.”
In 2021, venture capitalists jumped into the crypto space and invested a combined $30 billion in tokens and several blockchain firms while major corporations increased their holdings significantly.
“This is much different from in 2018 where tech stocks were still doing well but Bitcoin sold off along with the rest of the crypto market cap,” said Farrell.
However, to hit the $200,000 predicted by the company, Farrell said the crypto space would have to attract another wave of investors as it did in 2021.
The company added that “All assets can sell off and drop another 50% if the Fed hikes 4% tomorrow or next month,” he said. “But right now, as things stand, the upside to both Bitcoin and ETH is much larger than the downside.”