Mateen Soudagar, a non-fungible token (NFT) analyst; By establishing a link between Bitcoin, Ethereum and NFTs, he said that if these two coins, which occupy the top two places in terms of market value, rise to certain levels, NFTs can be hit or even collapse.
Analyst: NFTs if Bitcoin and Ethereum reach $100,000 and $10k…
According to the analyst, most NFT projects will likely collapse if Bitcoin reaches $100,000 and Ethereum $10,000. According to Soudagar, 60-75% of existing NFT projects are “fraud” and he says that the rising price of BTC and ETH will also cause speculators to increase demand, which is why many project owners will start to fear. “NFT projects where people are mostly involved [for speculation] will likely take a hit,” Soudagar said. And it probably won’t get better,” he said.
According to the analyst, speculators are taking up too much space in the NFT market right now and many investors will go crazy as prices fall, which will trigger more selling waves. Soudagar believes the NFT industry will evolve into more “polished games and virtual worlds”, but “low-effort projects will disappear.”
What’s next in the NFT field, according to the analyst?
On the other hand, Soudagar drew parallels between the behavior of altcoins and NFTs. He discovered that many NFT projects “follow the same sentiment” as altcoins, meaning that BTC fell sharply while it rallying as money moved from smaller coins to BTC. “NFTs, like altcoins, will take a hit when Bitcoin or ETH hits all-time highs. Good altcoins should do well in the long run. Just like NFTs,” he explains. However, he points out that this view is short-term.
He says that NFTs, which he defines as “good projects” for a long time, will have lasting power, albeit a general collapse. He also proposes the alternative that NFT prices will increase if the expected crypto bull lasts for several months.
BTC price up: reaching ATH
As we reported , Bitcoin climbed to a record high of $ 67,000 after the approval of the first US Bitcoin futures-based exchange-traded fund (ETF) on October 20. The cryptocurrency has more than doubled since its low of $30,000 in late July. Plan B’s stock-to-flow (S2F) model, on the other hand, expects the price to rise to $100,000 by the end of the year. Similarly, Ethereum, which has risen above its all-time high of $4,000 in the past few days, is surging to $10,000 this fourth quarter, according to the model.