The entire crypto market took a big step toward mass adoption in 2021, and now that the year is drawing to a close, analysts are setting price targets for 2022.
Many analysts are backing calls for Bitcoin to hit $100,000 (BTC) by the end of 2021, and while that seems unlikely, most investors expect this key price level to be resolved by the second quarter of 2022.
Here are some analysts’ predictions for Bitcoin price in 2022.
Bitcoin still on track to break $100,000
Analysts have become more reticent about casually predicting Bitcoin prices since PlanB’s S2F model incorrectly predicted a price of $98,000 at the end of November, even though the model’s predictions from August to October were precise.
While some traders are now questioning the validity of the S2F price model, crypto analyst and anonymous Twitter user "DecodeJar" still believes that BTC will break through $100,000 in the next few months. The analyst said that by the end of 2022, the price may Rising to as high as $250,000.
DecodeJar believes that based on Elliot Wave extensions and Fibonacci retracement levels, Bitcoin will reach a "conservative price target" of $190,233 on June 7.
DecodeJar warned in a follow-up tweet:
"Forecasts of future price and timing are only a guide, but combining this range with other indicators as we approach it allows us to exit cleanly as we approach the top. I lean on the more conservative side - 19 Ten thousand U.S. dollars."
Regulations to be introduced in 2022
Speaking of the future of the entire cryptocurrency ecosystem, David Lifchitz, managing partner and chief investment officer of ExoAlpha, said that "cryptocurrencies will still exist in 2022", which means that "governments will not ban them".
However, Lifchitz said, “They want cryptocurrencies to be regulated so that the gap between cryptocurrencies and fiat currencies is tightly controlled, while also treating cryptocurrencies as a taxable source of income to enrich their coffers.”
Lifchitz predicts that as the DeFi ecosystem continues to grow and new features are developed, banks and insurance companies will be forced to adapt their business models to remain competitive, while “middleman businesses are rendered redundant by DeFi and face greater risks.” .”
Speaking of the frenzy in the NFT space, Lifchitz expressed reservations about the industry's ability to continue growing at a lightning-fast pace, and touched on some deep-seated concerns that regulators may be making progress.
Lifchitz said,
"They've become so hot that people can't help but wonder if they're being used for money laundering...I know there's so much money moving around now because of central banks that it has to find a home, but NFTs in 2021 make me Reminiscent of the Dot.com era in mid-1998, there is still room for a parabolic price increase followed by a bubble burst.”
Regarding the hype surrounding the emerging metaverse, Lifchitz said that while it may seem as though we're traveling to a future that could be like the movie scene in Ready Player One "where people take refuge in virtual worlds because their real world is scary, our world is still" Stay away." While it looks like we're headed toward a future that might resemble the scene in the movie "Ready Player One," "where people hide in a virtual world because their real world sucks," our world is still "away from that." There are still several years."
Mass adoption is likely to continue
Despite the signs of short-term weakness, Loukas Lagoudis, executive director of cryptocurrency and digital asset hedge fund ARK36, "is convinced that the overall bullish trend in the crypto market will continue in 2022."
Lagoudis believes that "the continued adoption of digital assets by institutional investors and their further integration into the traditional financial system will be the main driver of growth in the cryptocurrency space next year," as institutions are believed to begin to view "digital assets as more valuable than gold" during 2021. more suitable as a reserve asset".
Lagoudis said,
“Additionally, because digital assets have consistently outperformed traditional asset classes, we predict that investors will look to deploying digital assets as part of their risk management strategies – especially given an increasingly inflationary economic environment and falling bond yields Rate."
Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, said, “The trend seems to be towards a focus on performance, dApp development and a somewhat more centralized blockchain.”
Bonnefous said this is a significant change from past trends, which were more focused on “security, stores of value, and more decentralized projects like BTC and even ETH.”
Bonnefous said,
“Basically, the market seems to be valuing business agility and cost-effectiveness more than blockchain purity, which is a big change from the past few years. This attractive relative value trade may continue into next year.”
Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.
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