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- Forrest Przybysz, a senior cryptocurrency analyst at Token Metrics, has mixed news for bitcoin fans.
- The token should hit $120,000 in early 2022 — but that might cause the bitcoin bubble to burst.
- He also has seven altcoins to consider buying as the metaverse and digital cash gain momentum.
Bitcoin believers like Forrest Przybysz, a senior cryptocurrency investment analyst at Token Metrics, have shrugged off the crypto’s recent 15% correction. After all, Przybysz told Insider in a recent interview, bitcoin had risen by 66% over seven straight weeks, so it was bound to sell off. A healthy correction is no reason to panic.
Volatility is to be expected with burgeoning assets like bitcoin, but if Przybysz’s latest prediction is proven correct, those who can withstand the ups-and-downs and hold on for the next six months will reap the rewards.
Bitcoin should reach a “big, aggressive peak” of $120,000 sometime between January and May, Przybysz told Insider, adding that its current “worst-case” scenario is $44,000. Two months ago, the crypto analyst told Insider that bitcoin could charge to between $100,000 and $150,000 by year’s end, which is looking more and more like a long shot.
The match that ignites the bitcoin rocket could be a bitcoin spot exchange-traded fund (ETF). While a bitcoin futures ETF already launched in October and helped the token rally, an ETF directly backed by the token would be a much more positive development, Przybysz said. That catalyst may potentially drive bitcoin to $150,000, or even a “stretch” target of $180,000, he said.
Bitcoin’s boom may lead to its bust
Przybysz acknowledged that if bitcoin were to double from current levels, it won’t do so in a straight line. Near-term upside may be capped at $79,000, he said, roughly $10,000 above its previous all-time high.
And even if bitcoin hits his lofty $120,000 target next year, Przybysz said it may not be a welcome development for long-term investors, as it could be the beginning of the end of bitcoin’s big run.
“We’re getting to a place in the crypto cycle where we’re towards the end of the four-year cycle, Bitcoin’s four-year halfing cycle,” Przybysz said. “And usually towards the end of that is the most volatile period of time with the most aggressive moves upwards. But those aggressive moves upwards are almost always, are really always, followed by a pretty sharp crash with a lot of volatility. So I’d say that’s very likely. … The market looks very ripe for a parabolic runup.”
Altcoins to buy as the metaverse, digital cash gain steam
If bitcoin blows up, altcoins — typically defined as cryptocurrencies besides bitcoin — may benefit.
Seven smaller altcoins that Przybysz is bullish on are listed below, along with each token’s symbol, market capitalization, and use case. The crypto analyst told Insider that he personally owns three of the altcoins, besides bitcoin and ethereum: Wonderland, Avalanche, and Nano.
The first four tokens mentioned offer exposure to the metaverse, which is described as the next evolution of the internet thanks to the more immersive experience it may one day offer. Przybysz said he’s bullish on the metaverse as investment grows in the next few years.
“The metaverse, I believe, is going to be a continued narrative that people continue to jump in on and invest in because I think they see it as the future,” Przybysz said. “I don’t think the narrative for the metaverse is over quite yet.”
One non-metaverse altcoin that jumps out to Przybysz can be found at the bottom of this list, along with a lightly edited rendition of his thesis on it. The altcoin is his largest personal position — bigger than bitcoin or ethereum — he said, even as it’s lagged its peers lately.
CoinMarketCap
Symbol: SAND
Market cap: $3.8B
Use case: A blockchain-based video game that has a digital world in which users can build and exchange digital assets.
CoinMarketCap
Symbol: MANA
Market cap: $7.2B
Use case: A virtual reality platform that lets users create and monetize content.
CoinMarketCap
Symbol: ILV
Market cap: $688M
Use case: An open-world video game built on ethereum that allows users to battle while collecting and trading digital items.
CoinMarketCap
Symbol: ATLAS
Market cap: $354M
Use case: A multiplayer online game in a virtual world where users fight for resources and control.
Markets Insider
Symbol: TIME
Market cap: $500M
Use case: A decentralized reserve currency built on the Avalanche network that is backed by a basket of assets and aims to one day serve as a medium of exchange.
CoinMarketCap
Symbol: AVAX
Market cap: $30.4B
Use case: A blockchain that rivals ethereum by striving to serve as a platform for decentralized applications.
CoinMarketCap
Symbol: NANO
Market cap: $716M
Use case: A lightweight form of digital money that offers quick, secure payments.
Thesis: “There’s an emerging narrative that there’s a need for a digital cash solution. Amazon will no longer be accepting Visa in the United Kingdom because fees are too high. Having that centralized middle-man that takes a transaction fee is a pretty big problem. Here’s the other thing with Nano that’s interesting: They brought on an advisor, who is the CEO of FlowHub, which is a cannabis point-of-sale solution. The cannabis industry is largely cash-based because many big payment providers won’t process payments in the cannabis industry. Crypto can be an alternative for that.”