Cryptocurrencies have had an especially volatile past month, but an influential market analysis company is predicting gigantic gains in the coming months.
FSInsight, in a note to investors, said Bitcoin could hit $200,000 in the second half of 2022. That’s a 462% increase from the crypto’s price as of Monday morning. Ethereum is also set for potentially huge gains, said FSInsight, with a prediction of a price as high as $12,000 this year, a 385% premium to where it is trading now.
The report noted that cryptocurrencies are increasingly becoming connected to tech stocks. Sean Farrell, head of digital asset strategy, said this was due to the “legacy market capital entering the fold.”
Last year, the crypto industry saw venture capitalists invest $30 billion into tokens and blockchain companies. Major corporations also boosted their holdings significantly.
“This is much different from 2018 where tech stocks were still doing well but Bitcoin sold off along with the rest of the crypto market cap,” said Farrell.
To meet the $200,000 target, Bitcoin would need to attract another wave of investors, as it did last year—something Farrell says he sees a “reasonable chance” of happening. It would also require the market to rebound in the second half, but prices are already notably higher than the Jan. 24 low (though well short of its all-time high).
Meanwhile, growth in NFTs, Web3 applications, and decentralized finance (DeFi) applications has resulted in significant growth for the Ethereum network, which makes it “remarkably undervalued” says Farrell.
Bullish predictions on Bitcoin have been made before, of course, and the most optimistic have rarely proved accurate, but FSInsight and Farrell say they are still among the faithful, as long as the government doesn’t get in the way.
“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.”
This story was originally featured on Fortune.com