Price forecasts for 2022.
Many researchers predicted a $100,000 (BTC) price by the end of 2021, and while this appears unrealistic, most investors expect it by Q2 of 2022. Here are some Bitcoin price estimates for 2022.
Bitcoin is still on track to surpass $100,000
Analysts have been more circumspect about making off-the-cuff Bitcoin predictions since PlanB’s stock-to-flow model forecasted an inaccurate $98,000 BTC price by the end of November, despite the model’s accuracy from August to October.
While some traders are increasingly doubting the stock-to-flow price model’s validity, crypto expert and pseudonymous Twitter user ‘DecodeJar’ believes BTC will surpass the $100,000 price point over the next few months and might reach as high as $250,000 by the end of 2022.
#Bitcoin top sliding scale model.
1/ Conservative/Early projection:
Halving-to-top projected at same rate: 7 Jun 22.
2.618 Extension in Wave 5: $190,233.
2/ Extreme/Late projection:
Bottom-to-top projected at same rate: 19 Dec 22.
3.618 Extension in Wave 5: $251,971.
— Steve⚡ (@decodejar) December 12, 2021
According to the tweet above, DecodeJar believes Bitcoin will reach a “conservative price objective” of $190,233 by June 7, based on Elliott Wave extensions and Fibonacci retracement levels.
DecodeJar cautioned in a subsequent tweet that:
“Projections of future price and time are only a guide, but combining this range with other indicators as we get closer, can allow for a clean exit near the top. I favor the more conservative end of the scale ~$190,000.”
Regulations are coming in 2022
David Lifchitz, managing partner and chief investment officer at ExoAlpha, addressed the future of the entire cryptocurrency ecosystem, stating that “crypto’s will still be around in 2022” in the sense that “governments will not outlaw them.”
Rather than that, Lifchitz stated, “they want to regulate them in order to keep cryptos on a leash in comparison to fiat currencies and also to use them as a source of taxed income to replenish their coffers.”
The world needs standards to address risks from crypto and the @FinStbBoard should develop a global regulatory framework to help. Read more about the policies needed in the latest #IMFBlog https://t.co/ZIZ6ggxuIu pic.twitter.com/P0TTSLi8SR
— IMF (@IMFNews) December 9, 2021
As the DeFi ecosystem matures and gains new capabilities, Lifchitz projected that banks and insurance companies will be compelled to alter their business models in order to remain competitive, while “middle-man enterprises will be more vulnerable as they are rendered obsolete by DeFi.”
Regarding the NFT craze, Lifchitz raised misgivings about the sector’s capacity to maintain its lightning-fast growth rate and highlighted some of the deeper issues that authorities may have moving forward.
“It has become so hot that one cannot help but wonder if they are not used for money laundering... I know there’s so much money sloshing around thanks to the central banks that has to find a home, but the NFTs in 2021 remind me of the Dot.com era in mid-1998, there’s still room for a parabolic price boom, then a bust.”
In response to the hype surrounding the emerging Metaverse, Lifchitz stated that while it appears as though we are heading toward a future reminiscent of scenes from the film Ready Player One “where people seek refuge in a virtual world because their real world is terrible,” our world is still “years away.”
Mass adoption is likely to continue
Despite signals of near-term instability, Loukas Lagoudis, managing director of crypto and digital asset hedge fund ARK36, “is convinced that the crypto market’s general bullish trend will continue in 2022.”
Lagoudis suggested that “sustained institutional investor adoption of digital assets and their continued integration into legacy financial systems will be the primary drivers of crypto space growth in the coming year,” as institutions are expected to begin favoring “digital assets over gold as a reserve asset” by 2021.
“In addition, since digital assets have consistently outperformed traditional asset classes, we predict that investors will see allocation to digital assets as a part of their risk management strategy – especially given the increasingly inflationary economic environment and the declining bond yields.”
According to Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, “the trend appears to be toward blockchains that prioritize performance, decentralized applications development, and are somewhat more centralized.”
Bonnefous saithis is a dramatic departure from previous trends, which emphasized initiatives “focused on security, a store of wealth, and are more decentralized, such as BTC and even Ether.”
“Basically, the market seems to go for business agility and cost-efficiency rather than blockchain purity, a big change from the past years. This winning relative value trade is likely to continue into next year.”
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