#Token metrics driver

Either way, Farooq said the bitcoin halving should trigger a surge of investment in the crypto.Įthereum, like bitcoin, has done little in recent months to make Farooq more bullish on it, even though it too has the promise of a key technical change on the horizon.

#Token metrics driver

The only significant price driver Farooq sees for bitcoin is the same reason he has a hunch that the crypto will one day be treated as an inflation hedge: the next iteration of its halving cycle, which isn't scheduled to occur until March 2024.īitcoin has a capped supply, which is why some have called it ' digital gold,' and the 50% reduction in new bitcoin circulated should make each token relatively more scarce, in theory. 'I just do not see any futuristic catalyst unless markets start to price bitcoin as an inflation hedge, and we are seeing a lot of confusion there,' Farooq said.

But besides that, the Token Metrics research director is still lukewarm about bitcoin compared to its altcoin peers, and said he expects it to stay range-bound between $40,000 and $65,000 over the next two years. It has since fallen about 30% from the mid-$50,000s to $39,800 today.įive months later, Farooq's view on bitcoin hasn't changed much - with one big exception: He now sees inflation as a headwind for the token instead of a tailwind. He told Insider in late November that he thought bitcoin would only reach $70,000 over the next 18 months - a level it had nearly hit just two weeks earlier. Unlike many of his contemporaries who predicted that bitcoin would top $100,000 in 2021, Farooq didn't get carried away with his price target for the token. And this is something that markets do not appreciate.' What's next for bitcoin and ethereum? More of the same 'And now you're going to see the Fed aggressively hike rates. 'The monetary policy and the fiscal policy in the US was very loose,' Farooq said. Concerns about runaway inflation - and the Federal Reserve's decision to quickly raise interest rates in response to it - have gripped the crypto market and are worth watching closely, according to Farooq. Large and small cryptos have, for the most part, had a dreadful year. That's why there's a lot of emphasis on marketing.'

'So you don't necessarily have to have a superior technology to achieve that. 'Crypto is all about network effects,' Farooq told Insider. The two largest cryptocurrencies have, in the eyes of many, legitimized digital assets over the past half decade - but by doing so they have laid the groundwork for a wave of new competitors that have built superior networks.Ĭontrary to what bitcoin maxis will argue, 'there is definitely better tech out there,' said Mehdi Farooq, the director of research at Token Metrics, in a recent interview with Insider.īut while Farooq doesn't see either bitcoin or ethereum logging big gains anytime soon, he also said that he's not bearish on them because both have achieved scale, which should allow them to survive for the long term. Each can pose a serious threat to ethereum, even if the bigger crypto survives long term.īitcoin and ethereum may be victims of their own success.The director of research at Token Metrics shared which three altcoins he's bullish on instead.Bitcoin and ethereum may be range-bound for a while, said crypto expert Mehdi Farooq.Account icon An icon in the shape of a person's head and shoulders.