$ 100,000 Bitcoin, $ 5,000 Ethereum, 2 Altcoins to Watch: Lyn Alden

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Bitcoin and Ethereum took off in 2021 and still have potential, strategist Lyn Alden predicts. Cryptocurrencies are very volatile and depend on sentiment, headlines, and regulatory policies. According to Alden, there are only two altcoins worth considering.

Bitcoin (BTC) will hit $ 100,000 in 2022 and Ethereum will hit $ 5,000, predicts Lyn Alden, founder of Lyn Alden Investment Strategy. But the cryptocurrency bull has warned future crypto investors that not everything that glitters in the hazy altcoin market is “digital gold.”

The world’s most famous cryptocurrency grew 56% in 2021 and climbed to 120% earlier in the year, sparking investor interest as both a digital currency and a store of value. Despite the outsized gains, Alden said she is very bullish on bitcoin and believes it still has five to ten years of attractive growth.

“I think we’re still in the early to middle stage of its long-term trajectory,” Alden said in a recent interview with Insider. “So that remains, I think, the best risk-reward sort of allocation to define and forget.”

Alden doesn’t have a specific price target, but said she believes bitcoin has a good chance of going above $ 100,000 at some point before the end of 2022. Others, like Founder Cathie Wood , CEO and CIO of ARK Invest, have hinted that bitcoin could rise from $ 300,000 to $ 500,000 if it reaches the size of the US monetary base or the market cap of gold.

“The award is very sentiment driven, headline driven, and regulatory driven,” Alden said. “There are all kinds of things that could prevent that from happening, but I think the overall trajectory and purchasing power that we’re seeing is more likely than not to push it to that level this year.”

Growing concern over the massive increase in money supply by global central banks has fueled interest in bitcoin, the supply of which is capped at 21 million. Positive momentum developed for so-called ‘digital gold’ as companies like MicroStrategy (MSTR) and Tesla (TSLA) began hoarding it as an alternative to cash on their balance sheets, which helped to trigger a price hike that brought bitcoin back into the mainstream. . The participation of institutional investors in the rally also contributed to the gains.

Bitcoin can rise further thanks to a self-fulfilling prophecy. More companies accepting the digital asset as a form of payment and governments increasingly tolerating it will lead to improved sentiment and positive headlines that could prolong its rally. Regulations are widely seen as a threat to cryptos, but some argue that government oversight could help legitimize digital assets and ensure their sustainability.

Ethereum’s market capitalization of $ 373 billion makes it the second largest cryptocurrency in the world and the only other crypto with a decent network effect, Alden said. The success or failure of cryptocurrencies largely depends on the number of users they attract, and the trend is naturally strengthening, meaning that large cryptos are much more likely to outlast their smaller counterparts.

Bitcoin’s biggest competitor is always changing how its underlying framework works. Ethereum is currently pivoting to “Ethereum 2.0,” which results in blockchain native tokens, Ether (ETH), being blocked during network upgrade, Alden said.

It’s hard to say where Ether tokens are trading, Alden said, adding that a strong supply squeeze is “tactically bullish” and could push its price up more than 50% north of 5,000. $.

But not all cryptos are worth considering, Alden warned.

Altcoins, generally defined as cryptocurrencies in addition to bitcoin and ethereum, have a very high failure rate and can even be scams, Alden said, adding that she only pays attention to the 10 largest cryptocurrencies that have already gained ground.

“I think most [altcoins] are smoke and mirrors, ”Alden said. “They have, historically, a very bad record. There are pockets of interesting technology worth watching. “

Two altcoins Alden is eyeing are currently on fire: Cardano (ADA), which saw its main token reach historic highs and become the world’s fourth largest cryptocurrency after a 39% increase last week, and Solana (SOL ), which rose 70% this week to all-time highs. Alden is particularly bullish on the latter but does not have a price target for it.

Coinbase

“I think Solana is a well-designed Ethereum competitor,” Alden said. “Its main risk is that it’s newer, that it doesn’t really have a significant network effect yet. And so, it hasn’t really hit critical mass, but it’s well designed. I can. so see that taking a certain stablecoin market share, for example, so this is one of the ones that I watch frequently. “

Solana, a self-proclaimed “fast, secure and censorship-resistant” blockchain that hosts crypto applications and stablecoins, “has my eye,” Alden said, adding that she was optimistic about its future if it could. take market share from its competitors.

“We have to see what happens with Cardano,” Alden said. “They have a lot of tips, but they’ve had a pretty slow development, so I tend to prefer Solana over Cardano.”

Market insider

Another crypto bull, entrepreneur David Gokhshtein, told Insider in late June that Cardano was one of the four altcoins he was most bullish on. The coin has appreciated 56% since then.

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