Bitcoin at $ 100,000? What cryptocurrency analysts say in 2022


After a hawkish turn by the Federal Reserve slowed down cryptocurrencies late in the year while largely sparing other risky assets, central bank policy is playing a key role in the debate over the outlook for tokens in the future. 2022.

To what extent will Jerome Powell’s Fed tighten its policy to contain inflation? The answer to this question will help determine whether Bitcoin follows its 60% gain in 2021 with another record year, some analysts say.

Another school of thought argues that as companies from Meta Platforms Inc. (formerly Facebook) to Apple Inc. sink deeper into the metaverse, and consumers continue to pile into non-fungible tokens, this will grow. crypto higher regardless of the macroeconomic forces at play. Just witness last year’s sale of an NFT artwork for $ 69.3 million at Christie’s, or the loosely organized group of crypto investors who fought billionaire Ken Griffin at an auction for a copy of the US Constitution.

Bitcoin was trading at around $ 46,100 at 9:52 a.m. in Hong Kong on Tuesday, up about 0.2% on the day. Here, four market watchers discuss their outlook for the wider token and crypto universe in 2022:

“We are bullish on Bitcoin for the long term, based on our long term trend tracking gauges,” Katie Stockton, founder and managing partner of Fairlead Strategies LLC, said in an email.

“We assume that the long-term uptrend will hold and that a more decisive breakout to new highs would allow an impressive projection of measured moves of around $ 90,000. For now, a corrective phase is still in effect, although there are potential signs of short-term downside exhaustion. “

“The # 1 influencing factor for Bitcoin and cryptocurrencies in 2022 is central bank policy,” Antoni Trenchev, managing partner of crypto lender Nexo, said in an email. “Cheap money is here to stay, which has huge implications for crypto,” like “The Fed doesn’t have the guts or the backbone to withstand a 10-20% stock market collapse , as well as an adverse bond market reaction. “

Trenchev sees a turbulent 2022, but predicts Bitcoin will hit $ 100,000 by the end of June. He also doesn’t expect tokens like Solana and Avalanche to deliver the same exponential gains as in 2021, but rather “these upstarts – awash in arrogance, attitude and funky narratives – will face the same scale challenges that Ethereum and other older protocols face. ”

“What really excites me in 2022 is the metaverse,” he wrote. “The ‘birth’ and use of the term metaverse is a mess, and it has a lot of potential. It will be one of the dominant themes for next year: the metaverse, building infrastructure and then NFTs. that will be part of the economy there. “

“While I expect speculative zeal to continue in the crypto space, this one, like inflated tech valuations, faces a much more challenging environment in 2022,” said Jeffrey Halley, analyst at senior market at Oanda Asia Pacific, in an email. “The main reason for this is the start of interest rate normalization by the Federal Reserve, but with other major central banks likely to follow suit. This will challenge the rationale for crypto as an alternative.” to fiat money. “

“The suspension of the crypto space is the threat of more regulation and frankly, with a new coin coming out every week that is ‘the next big thing’ and driven by speculation and not blockchain, I have hard to see how either of them will do it. be, ”said Halley.“ I continue to believe that cryptocurrencies are the greatest case of group thought stupidity in financial markets in history. Music may continue to play for part of 2022, but the Emperor is still not wearing any clothing. “

“The race is on to be the App Store for crypto,” Philip Gradwell, chief economist at Chainalysis, said in an email. “A major lesson from Web 2.0 was that consumers love platforms, and I don’t think that’s going to change for Web 3.0. Currently, there isn’t a crypto platform that owns the customer relationship and brings them together. I predict that in 2022, many companies will be rushing to build this platform, with Coinbase in the lead as it integrates DeFi and NFT. “

This story was posted from an agency feed with no text editing. Only the title has been changed.

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