RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Wednesday, falling by 1.11 percent to $43,551 at 12:50 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,109, up by 0.15 percent, according to data from Coindesk.
With bitcoin expected to reach $100,000 in the last month of last year, predictions are starting to appear again this year.
Bitcoin could increase nearly 500 percent from the current price point to around $200,000 per unit, according to research firm Fsinsight and its head of digital asset strategy, Sean Farrell.
They are bullish on the potential upside of crypto assets, as the head of research at Fundstrat Global Advisors recently insisted that bitcoin still has massive growth ahead.
Their note also says times are different now that major businesses and legacy market capital are entering the fold, according to Bitcoin.com.
Fsinsight’s forecast indicates that US policymakers may bring some downside to the price growth of the leading crypto assets.
“All assets can sell off and drop another 50 percent if the Fed hikes 4 percent tomorrow or next month,” Farrell remarked in the note.
“But right now, as things stand, the upside to both bitcoin and ethereum is much larger than the downside.”
The company's forecast also indicates that ethereum has the potential to inflate its value in US dollars during the latter half of 2022.
It also expects ethereum to rise nearly 400 percent to around $12,000 per unit.
Cryptocurrency values have increased over the past week, with bitcoin gaining more than 12 percent, and ethereum jumping more than 13 percent.
India’s finance minister, Nirmala Sitharaman, has revealed that government officials are constantly monitoring the crypto sector, India Today reported.
“We have a team of people who are constantly monitoring, watching the crypto sector and listening to people from that area. They are giving 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 made it clear that crypto taxation will be implemented first.