Crypto Weekly: 2/4/2021

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Last Thursday, we held our FSInsight 2021 crypto outlook call and made three bold predictions:

1. We raised our price target on Bitcoin from $40k to $100k.
2. We reiterated our $10.5k Ethereum price target released on 1/20/2021.
3. We forecasted the total crypto market cap to rise to $5T.

Outlook Implied Crypto Market Expectations

While prices have risen a bit since our call last week, the below table illustrates the outlook implied expectations for the market cap of Bitcoin, Ethereum and altcoins more generally.

Bitcoin Rallied This Week

We remain bullish on Bitcoin and think it must continue to rise during 2021 for our other forecast to prove correct given its size and heavy influence over the entire crypto market. After the quick run we saw in the first week of the year, we think the retracement and choppy movement from Bitcoin has allowed capital to flow to other assets within the crypto ecosystem. Bitcoin has started to rally again and we think as long as prices hold generally in this range or above, it will benefit crypto assets broadly. 

Ethereum Hitting New Highs