Bitcoin And Ethereum Could Surge By 300% In 2022 | CryptoGazette
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The optimistic predictions about the price of the most essential coins out there keep flowing. Check out the latest ones about the prices of Bitcoin and Ethereum below.
It’s been revealed that an analyst at a leading independent research firm believes the top two cryptos are undervalued and they are primed for major price increases later this year.
In a new FS Insight report, Fundstrat Digital Asset Research’s head of digital asset strategy Sean Farrell addressed the fact that Bitcoin (BTC) has moved past the stage where cycles determine its price.
Bitcoin analysis
As the online publication the Daily Hodl notes, the strategist first examines Bitcoin’s disappointing price action over the past few months.
He brought up the fact that in the late fall, many crypto enthusiasts were calling for BTC to hit $100,000 – only to witness a 50% correction after briefly touching $69,000 in November.
“Institutional adoption is a double-edged sword. Despite bullish underlying supply trends, BTC became heavily correlated with equities toward the end of Q4 2021, and consequently sold off in the face of Fed tightening.”
It’s also important to mention the fact that when looking at Bitcoin’s market cap to realized value (MVRV) post-halvening in 2020 versus both 2012 and 2016, the analyst said that the data is showing the following:
“more efficient price discovery and perhaps signaling the transition from payment network to store-of-value.”
He finished his prediciton by saying that BTC will see a rough first half of 2022, before the king coin breaks out in a major way well past the $100,000 milestone.
“We applied an MVRV ratio of 3.2x, which is the historical median for Bitcoin when an ATH [all-time high] is reached, to the projected realized cap. We sensitized the model to reach [a] range of $138k to $222k.”
At the moment of writing this article, BTC is trading in the red, and the king coin is priced at $43,215.
Regarding the price of ETH, the analyst said that it’s still undervalued:
“We applied a similar analysis to ETH (based on inflows and estimated MVRV) to arrive at a price target of $12,000.”
At the moment of writing this article, ETH is trading in the red and the coin is priced just above $3k.
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