Cryptocurrency needs no introduction because you have probably heard of it, even if you have no interest in the industry, as it is the most popular and emerging blockchain technology. Crypto continued its popularity in 2021. Crypto became accepted by Goldman Sachs. Coinbase debuted in April 2021 (the first major crypto company to go public), and the first U.S. exchange-traded fund linked to Bitcoin launched in October.
According to CNBC, the best-known cryptocurrency, Bitcoin, had a good year. The digital currency has been nearly 70 percent since 2021, driving the entire crypto market to a combined $2 trillion value.
There are as many predictions as analysts are charting the future of cryptocurrency. So, watch this video until the end to learn some interesting crypto predictions for 2022. Let’s get started:
Table of Contents
1. Heading For A Crypto Crash Or An Exciting Climb?
2022 could see lower cryptocurrency prices. They hit a record high of $69,000 in November but are now below $50,000, down nearly 30%. Carol Alexander, a finance professor at Sussex University, expects Bitcoin to drop to $10,000 in 2022, wiping out most of its gains in the past 18 months.
Others don’t predict a 2022 crash. Yuya Hasegawa, a crypto market analyst at Bitbank, believes [quantitative tapering] is the biggest risk. He thinks it has been decided and is probably priced.
Many factors point to higher Bitcoin prices, including business acceptance and demand for Bitcoin ETFs, according to Sayantani Sanyal. Sanyal writes in Analytics Insight that market analysts predict Bitcoin could hit $100,000 by 2023 or 2022. Some say Bitcoin won’t hit $70,000 by 2022. In short, crypto predictions are all over the place.
2. A Lot More Investors Will Adopt Bitcoin
According to The Ascent, Ric Edelman, founder of the Digital Assets Council of Financial Professionals, predicts that by the end of 2022, more than 500 million people worldwide will own Bitcoin. Flori Marquez, the co-founder of BlockFi, agrees with Coin Telegraph. He says that clear rules and a better understanding of the industry have helped drive more people to use cryptocurrencies.
3. The First Spot Bitcoin ETF Could Get Approved
Some crypto investors predict the first spot Bitcoin ETF could be approved this year, giving investors direct exposure to the cryptocurrency. ProShares’ Bitcoin Strategy ETF launched last year but only tracked Bitcoin futures contracts. Analysts believe a Bitcoin Spot ETF will be approved because the market is mature enough.
4. Moving Toward Decentralized Finance (Defi)
Decentralized finance (DEFI) and decentralized autonomous organizations (DAOs) are “likely to be the highest growth areas of crypto,” says ICHI’s Bryan Gross. DEFI recreates traditional financial products without middlemen, while DAOs are a new internet community. DEFI deposits will surpass $200 billion in 2021, and demand will rise in 2022.
Carol Alexander recommends Ethereum, Solana, Polkadot, and Cardano coins for 2022 investors.
CNBC said DEFI is part of Web3. Web3 supporters claim that Amazon, Apple, Alphabet, and Facebook’s parent company Meta control online platforms. Web3 proposes a decentralized internet with blockchain and non-fungible tokens. Musk and Dorsey are skeptical.
5. Regulators Have Their Eye On Cryptocurrency
2022 will be a big year for cryptocurrency regulation. Luno’s VP of corporate development and global expansion predicts that 2022 will be a big year for regulation. Ayyar told CNBC he expects legal clarity on cryptocurrencies other than Bitcoin and Ethereum. Stablecoins, whose value is tied to assets like the dollar, may also interest regulators. Tether, the world’s largest Stablecoin, is controversial over whether it has enough assets to be dollar-backed.
6. Bitcoin Will Either Outperform Or Underperform The S&P 500
Bitcoin soared 66%, and the S&P 500 climbed 27% in 2021, despite the coronavirus threat to the global economy.
Bitcoin has performed like a risk-on asset, and Arcane Research predicts it will amplify stock market behavior. Bitcoin will likely outperform the stock market in 2022, the firm said. If the stock market has a red year, Bitcoin will likely underperform.
7. Ether Will Outperform Bitcoin Again
As of 2021, Ether had a 418 percent gain against Bitcoin’s 66% gain. As NFT sales continue to rise, analysts expect both to perform well. The majority of these tokens still use the Ethereum blockchain.
8. Most Meme Coins Will Disappear
Last year, a Dogecoin spinoff Shiba Inu climbed 44,540,000 percent. Squid, a coin named for the television drama “Squid Game,” jumped more than 75,000 percent in less than a week, only to disappear soon after.
9. USD Coin Will Hurdle Tether As Biggest Stablecoin
By cryptocurrency valuation, tether has held on to its reign as the largest Stablecoin. But it could be knocked off its perch once USD Coin decides to join the lending wave.
10. VIX Spikes Impact Bitcoin Performance
While the stock market performed well in 2021, Arcane Research said, “Fear in the broad financial markets directly affected Bitcoin’s performance.”
Spikes in the Cboe Volatility Index, or VIX, went in step with Bitcoin sell-offs. Arcane Research said market difficulties in 2022 could have repercussions on Bitcoin’s short-term price trajectory.
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1 thought on “Top 10 Crypto Predictions For Crypto Buyers in 2022”
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