Ethereum Will Hit $12,000 In 2022, Says FSInsight

A report from FSInsight outlined a scenario where Bitcoin BTC/USD and Ethereum ETH/USD could see triple-digit percentage gains before the end of the year.

What Happened: “Ethereum is undervalued relative to cloud platforms, and ether, which is the native token of the network, could reach $12,000 in 2022,” said analysts at FSInsight in a note to clients seen by CoinDesk.

Sean Farrell, the head of digital asset strategy at the firm, noted that sectors like decentralized finance (DeFi) and non-fungible tokens (NFTs) have driven massive growth for the Ethereum network.

According to FSInsight, however, “Bitcoin is still king.” Farrell predicted that the leading digital asset could reach a high of $200,000 before the end of the year despite a rough start to 2022.

Bitcoin was trading at $44,267 Monday, gaining 6.27% in the last 24 hours. Ethereum was trading at $3,175, gaining 5.88% over the same period.

In order for Bitcoin to hit a price of $200,000, it would need to gain 460% from its current price. Ethereum would need to rise by more than 380% before the end of 2022 to hit FSInsight’s predicted price of $12,000.

“The correlation has become more pronounced with Bitcoin and the wider crypto market now being strongly correlated with technology stocks because of legacy market capital entering the fold,” said Farrell.

"All assets can sell off and drop another 50% if the Fed hikes 4% tomorrow or next month. But right now, as things stand, the upside to both Bitcoin and ETH is much larger than the downside."

Photo by DrawKit Illustrations on Unsplash.