The US-based market data platform FSInsight published its major cryptocurrency price predictions for 2022, highlighting the growth of Bitcoin and Ethereum.
Late last year, and in early 2022, there have been multiple predictions on the crypto market from the largest players in the industry like FTX’s Sam Bankman-Fried, Nexo’s Antoni Trenchev, etc.
With that being said, the recent FSInsight’s predictions were a lot more extreme compared to earlier forecasts. According to the company’s downloadable report posted on February 3rd, Bitcoin may even hit $222K, with ETH going up to $12K by the end of the year.
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Such a price increase in a single year may be plausible due to several reasons. The main one is that BTC is much more widely used and accepted across the industry, and authoritative figures recognize it as a valuable asset, backed by next-gen technologies.
"Bitcoin’s transparent and immutable architecture coupled with its finite and fungible supply allows it to serve as a superior store of value for investors. For this reason, many have dubbed Bitcoin as digital gold." - FSInsight
Likewise, the report suggests that the high demand and low supply for assets such as BTC could ramp up the prices quite heavily. That is partially linked to miners receiving fewer rewards per block due to halving, which will reduce the amount of Bitcoin coming into the market.
Halving is basically an automated algorithm to regulate the supply of Bitcoin, i.e., miners get a reduced reward for solving a block. Halvings get introduced every 4 years, and, currently, miners are awarded 6.25 BTC per block. The goal market cap of Bitcoin is 21M.
FSInsight highlights Bitcoin’s market value to realized value (or MVRV) which shows if the digital asset is undervalued or overvalued. Based on the report, Bitcoin is now at its lowest MVRV since April of 2020.
Likewise, the report predicts that ETH has the potential of going up tremendously due to its annual growth rate of 1,564% since 2020.
