When to expect a sharp change in the bitcoin exchange rate?

Contrary to investors’ disappointing start to 2022, the bitcoin exchange rate could increase by almost 400% in the second half of the year. This indicates that BTC retains its leadership position among virtual assets.

This is stated in the report “Digital Assets in a Post-Cyclical World,” prepared by market research firm FSInsight. According to the forecast of analysts, the rate of the first cryptocurrency will grow up to $200 thousand.

According to CoinDesk, strategists note that by the end of the fourth quarter of 2021, the bitcoin exchange rate began to correlate more strongly with the movement of the stock market and fell due to the prospect of tighter monetary policy in the United States. Sean Farrell, head of digital asset strategy, attributes this to the “legacy” of market capital being poured into the crypto sector.

The FSInsight paper also talks about the significant expansion of the Ethereum network. This was achieved through the development of such areas as decentralized finance (DeFi), non-interchangeable tokens (NFT) and Web3 applications (the third stage of the Internet evolution).

The authors of the report call Ethereum blockchain undervalued compared to cloud platforms. Therefore, by the end of the current year the price of the cryptocurrency “ether” (ETH) may reach the mark of $ 12 thousand.

In this case, experts are optimistic about the transition from consensus Proof-of-Work (PoW) to Proof-of-Stake (PoS), planned in the Ethereum network in 2022. This could attract even more capital to the cryptocurrency sector.

The fundamental difference between the two models is that with PoS, rewards come from storing coins (stacking), while with PoW, new tokens are mined by computation (mining). The latter method is considered to be more energy-consuming and therefore more damaging to the environment.

Earlier another analyst also predicted bitcoin growth up to $200 thousand. Trader Nicholas Merten believes that to do this, the first cryptocurrency will need to first fall in price to $32.9 thousand per coin – so that investors could accumulate enough assets.