In a note titled “Digital Assets in a Post-Cycle World,” FSInsight noted that Bitcoin grew increasingly associated with stocks toward the close of last year and declined when faced with the potential of central bank tightening.
Because of “traditional market capital entering the fold,” Sean Farrell, Head of Digital Asset strategy, wrote in a note that the correlation has gotten more obvious with bitcoin and the entire crypto market now being significantly connected with technology equities.
However, Farrell stated “ bitcoin remains king, and that the cryptocurrency might hit $200,000 in the second part of the year after a rocky start to 2022. According to FSInsight, the Ethereum network has experienced enormous growth due to decentralized finance (DeFi), non-fungible tokens (NFTs), and other Web 3 applications.
The paper claims that Ethereum is undervalued in comparison to cloud platforms, and that ether, the network’s native token, might reach $12,000 by 2022. The paper also expressed confidence about Ethereum’s shift to proof-of-stake in 2022, which, if realized, will likely result in capital inflows regardless of bitcoin’s performance.
At the time of publication, bitcoin was worth $42,750 and ether was worth $3,068.