RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Wednesday, falling 1.11% to $43,551 as of 12:50 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,109, up 0.15%, according to data from Coindesk.
While bitcoin was expected to hit $100,000 in the last month of last year, predictions are starting to show up again this year.
Bitcoin could rise nearly 500% from the current price at around $200,000 per unit, according to research firm Fsinsight and its head of digital asset strategy Sean Farrell.
They are optimistic about the upside potential of crypto assets, as the head of research at Fundstrat Global Advisors recently insisted that bitcoin still has massive growth ahead.
Their memo also indicates that times are different now that big business and legacy market capital are coming into the fold, according to Bitcoin.com.
Fsinsight’s predictions indicate that US policymakers could lead to lower price growth for major crypto assets.
“All assets can be sold and fall another 50% if the Fed increases 4% tomorrow or next month,” Farrell noted in the note.
“But right now, as things stand, the pros of bitcoin and ethereum far outweigh the cons.”
The company’s forecasts also indicate that Ethereum has the potential to inflate its value in US dollars during the second half of 2022.
He also expects Ethereum to rise nearly 400% to around $12,000 per unit.
Cryptocurrency values have risen over the past week, with bitcoin gaining over 12% and ethereum jumping over 13%.
Indian Finance Minister Nirmala Sitharaman revealed that government officials are constantly monitoring the crypto sector, India Today reported.
“We have a team of people who are constantly monitoring, monitoring the crypto sector and listening to people in this region. They give me feedback,” Sitharaman said.
The finance minister also said that the Reserve Bank of India is working on issuing India’s central bank digital currency.
However, she clarified that crypto taxation would be implemented first.