Analysts give their top predictions for crypto in 2022
Bitcoin left 2021 with significant success. While the value of the world’s most popular digital asset was $26k at the beginning of 2021, it experienced a more than a 60% increase in one year, given that its worth was almost $42k.
This year, we have seen businesses, governmental institutions, central banks, and individuals increasingly investing in cryptocurrency, and they are modifying their structures to perform crypto-related actions. However, experts believe that potential investors should remain cautious despite the significant transformation as price volatility contains risks about the future of crypto assets.
Here is a compilation of the most famous predictions made by crypto experts from different areas. Take a look at them and make a wiser decision!
More people will adopt bitcoin.
The Digital Assets Council of Financial Professionals, Ric Edelman, claimed that at least 500 million people would adopt bitcoin by the end of 2021. The experts argued that the growth of country-level adoption and the increased regulation would positively impact individual-level adoption as well. Peter Schiff, the Euro Pacific Capital CEO, also pointed out the impact of increased news coverage: “CNBC is ‘reporting’ on the widespread increase in investor interest in Bitcoin during 2021, without acknowledging its own contribution to driving that interest.”
Bitcoin will experience a sharp decline.
After the record high of bitcoin in November 2021 with $69k is already much lower in value today. Some experts claim that the decline of bitcoin’s value will continue. The chief equity strategist at Union Bank, Todd Lowenstein states as such: “Without question, Bitcoin’s price chart appears to track many historical asset bubbles and busts and is carrying a ‘this time it’s different’ narrative just like other bubbles.”
Bitcoin will experience a dramatic rise.
A contradicting prediction is that the world’s most popular crypto will hit $100k in the following months. The famous bitcoin bull Michael Saylor from MicroStrategy further claims that the asset will eventually reach the value of $6 million. Jesse Powell, the CEO of Kraken, suggests that people treat bitcoin as an investment asset: “It’s up and down day to day, week to week. You don’t want to be trading this in a short time frame […] It’s more of a buy-and-hold investment.”
Regulation of the Crypto Universe
Many experts claim that the increased regulation of the crypto market is inevitable, and it will be a crucial issue in the world of cryptocurrency. While some consider it a positive factor for the increase in crypto adoption, others claim it is against this new finance’s core logic. Stablecoins, whose value is tied to that of particular fiat money, are declared to experience tighter regulation. In addition to these, there are also calls for more regulation of the DeFi zone.
The increased regulation seems inevitable, but its form(s) and impact are still unknown. That remains to be seen in the coming months.