Many analysts had predicted 6 figures for Bitcoin by the end of 2021. However, with Bitcoin currently at around $50,000 as we approach January, what is in store for the apex cryptocurrency in 2022?
It’s been quite a topsy turvy year for Bitcoin and cryptocurrency over 2021. The trend has generally continued upwards though as retail investors have sought the high yield that just doesn’t exist in the traditional financial sector.
Business Insider published an article yesterday on what some of the leading lights in crypto think will happen in 2022 as such disparate happenings as regulation, the metaverse, and mainstream adoption take their course.
Jesse Powell, CEO of crypto exchange Kraken, believes that “growing mainstream awareness” and “increased regulatory clarity” should provide an optimistic outlook for Bitcoin in 2022. He says that you only need to see the 10-year chart to know where the king of cryptos is going next.
He touts NFTs as being particularly big in 2022 as use cases like “provenance tracking, borrowing, and lending, become more widely developed.
Kyle Samani, managing partner at Multicoin Capital, feels that the tops are still not in for the likes of BTC, ETH, or SOL. The next bear market for Samani will not be on the scale of the last one back in 2017. He says that this time “everything works” and that there is “real utility”, unlike in 2017 when most projects just existed on a whitepaper and had not been developed.
Armando Aguilar, vice president of digital asset strategy at Fundstrat Global Advisors, is cautious about crypto given Fed tightening and Covid variant uncertainties. However, he still thinks that Bitcoin will reach $100,000 in the first half of 2022.
He also expects Ethereum to surpass $9000 and for projects involved with the Metaverse, and NFTs, as well as gaming guilds, to continue to register good growth.
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, experts crypto to outperform traditional investments.
"Renewed impetus from the Federal Reserve to take away the punch bowl, and declining bond yields may point to a macroeconomic environment in 2022 that favors top cryptocurrencies bitcoin and ethereum. Crypto assets showing divergent strength versus equities near the end of 2021 may portend continued digital-asset outperformance in 2022."
The strategist believes that as crypto assets grow in popularity, traditional asset managers will be obliged to purchase them, and avoid the risk associated with not having them in their portfolios.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.