![]() Regulations are generally viewed as a threat for cryptos, but some say government oversight may help legitimize digital assets and ensure that they have long-term staying power.Įthereum's $373 billion market capitalization makes it the second-biggest cryptocurrency and the only other crypto with a decent network effect, Alden said. More businesses accepting the digital asset as payment, and governments increasingly tolerating it, will likely lead to improved sentiment and positive headlines that could extend its rally. Institutional investors' participation in the rally also contributed to the gains.īitcoin can rise further on the back of a self-fulfilling prophecy. Positive momentum built for the "digital gold" as companies like MicroStrategy ( MSTR) and Tesla ( TSLA) began hoarding it as an alternative to cash on their balance sheets, which helped spark a price rally that brought bitcoin back into the mainstream. Growing anxiety about global central banks vastly expanding the money supply has fueled interest in bitcoin, which has a capped supply of 21 million. "There's all sorts of things that could prevent that from happening, but I think that the overall trajectory and buying power that we're seeing is more likely than not to push it to that level in that year." "The price is very sentiment-driven, headline-driven, regulation-driven," Alden said. Others, like Cathie Wood, the founder, CEO, and chief investment officer of ARK Invest, have implied bitcoin can rise anywhere from $300,000 to $500,000 if it reaches the size of the US monetary base or the market capitalization of gold. "So that remains, I think, the best risk-reward as kind of a set-it-and-forget-it allocation."Īlden has no specific price target but said she believed bitcoin had a good chance of topping $100,000 at some point before the end of 2022. "I think we're still in kind of the early-to-mid stage of its long-term trajectory," Alden said in a recent interview with Insider. Despite the outsize gains, Alden said she was very bullish on bitcoin and believed it had five to 10 more years of attractive growth. ![]() The most famous cryptocurrency is up 56% in 2021 and soared as much as 120% earlier in the year, gaining widespread investor interest as both a digital currency and a store of value. But the cryptocurrency bull issued a warning to prospective crypto investors that not all that glitters in the hazy altcoin market is " digital gold." According to Alden, there are only two altcoins worth considering.īitcoin will hit $100,000 in 2022, and ethereum will reach $5,000, Lyn Alden, the founder of Lyn Alden Investment Strategy, predicted.Cryptocurrencies are highly volatile and dependent on sentiment, headlines, and regulatory policies.Bitcoin and ethereum have taken off in 2021 and have further upside, the strategist Lyn Alden said.Account icon An icon in the shape of a person's head and shoulders.
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