Prospects of the crypto market in 2022

Over the past few weeks, analysts seem to be offering their forecasts for Bitcoin less and less. They were probably burned by the recent unsuccessful forecasts of PlanB, which used its famous model to offer target prices of $98,000 in November, and $135,000 in December. But, as we see, and according to Coinmarketrate.com, everything is far from according to plan.

Despite this, the Dutch financier is still confident in his other model, the “Stock-to-Flow” model, according to which the first cryptocurrency will be traded at an average of $ 100,000 in the period from 2020 to 2024:

“Imagine that a model that stayed within 1 standard deviation for 3 years failed. IMO, we are in the same place as in March 2019 when I published the S2F model: at the lower end of the 1sd range. DYOR. Look at the graph. Choose”.

Many observers share his optimism and believe that Bitcoin should reach the $100,000 mark in the coming months. Among them is DecodeJar, which believes that the digital asset should continue to grow, breaking the $190,000 mark in June next year:

“Bitcoin is the top model of the sliding scale.

1. Conservative/early forecast:

Projecting from half to the top at the same pace: 7 Jun 22.

2,618 Expansion in wave 5: $190,233.

2. Extreme/last projection:

Bottom-up forecasting at the same rate: 19 Dec 22.

3,618 Expansion in wave 5: $251,971″.

According to the second, more optimistic forecast, BTC will be worth more than $250,000 in December 2022.

“When zooming in, the two key expansion fibers of the Elliottwave Wave 5 intersect on two time projections. Nice, clean confluence sites.

Will the market last another 12 months? I do not know, but if this is the case, then the graph gives us a sliding scale for finding the top of BTC. The area is highlighted in red”.

Based on the fact that it is impossible to accurately predict the development of events in the market, the analyst added that he prefers his first target price at about $ 190,000:

“Forecasts of prices and time horizons are just a guideline. However, as we approach these time frames, the combination of this range and other indicators may allow an exit near the maximum.

I prefer the more conservative part of the scale – about $190,000.

Tighter regulation in 2022

David Lifchits, Managing Partner and Head of Investment at ExoAlpha, recently spoke about the future of the crypto industry. He believes that cryptocurrencies will exist in 2022, since governments will not ban them.

However, he believes that regulators “will seek to regulate cryptocurrencies in order to keep them under control compared to fiat currencies.” They will also consider them as taxable sources of income to replenish their coffers.

With the rise of decentralized finance (DeFi), Lifchits expects banks and insurance companies to be forced to adapt their business models in order to remain competitive.

“Companies acting as intermediaries are at the greatest risk because their business will become unnecessary due to DeFi.

Speaking about non-interchangeable tokens (NFT), the head expressed doubts about the ability of this sector to continue its rapid growth in 2022.

“The hype has become so big that one cannot help but wonder if they are being used for money laundering.

I am aware that there are huge amounts of money that need to find a place thanks to central banks, but NFTs in 2021 reminded me of the internet bubble in mid-1998. However. there is always the possibility of exponential growth followed by collapse.

As for the metaverse, David Lifchits believes that we are moving towards a future that may one day resemble scenes from the movie “The First Player to get Ready”, “where people take refuge in the virtual world because their world has become terrible.”

The adoption of cryptocurrencies will continue

Institutional Bitcoin investor Lucas Lagoudis, managing director of the ARK36 crypto hedge fund, is firmly convinced that the overall bullish trend in the crypto markets will continue in 2022.

The head says that this year institutions have started to “give preference to digital assets rather than gold as a reserve asset”. He believes that “continued adoption of digital assets by institutional investors and their further integration into existing financial systems will be the main factors for the growth of the crypto sphere next year”.

“Moreover, as digital assets consistently outperform traditional asset classes, we expect investors to consider allocating funds to cryptocurrencies as part of their risk management strategy. Especially given the increasingly inflationary economic environment and falling bond yields.”

According to Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, “the trend seems to favor blockchains that focus on performance, dApps development and are a bit more centralized.”

The executive considers this a significant shift compared to previous trends, which were more interested in projects focused on security, value storage and more centralized, such as Bitcoin or even Ether.

“The market, apparently, prefers the dynamism and profitability of the business, rather than the “purity” of blockchain technology. This is a significant change compared to previous years, which is likely to continue next year.”