In 2021, the entire crypto sector made significant progress toward widespread adoption, and now that the year is almost over, analysts are preparing price forecasts for 2022.
Many analysts advocated for a $100,000 (BTC) price before the end of 2021, and while this is implausible, most investors believe the crucial price level will be breached before the second quarter of 2022.
Here are some Bitcoin price forecasts for 2022, according to analysts.
Bitcoin is still on course to break the $100,000 barrier
Since PlanB’s stock-to-flow model inaccurately forecasted a $98,000 Bitcoin price by the end of November, even though the model had been spotted from August through October, analysts have been increasingly hesitant to make off-the-cuff Bitcoin predictions.
While some traders are increasingly doubting the stock-to-flow pricing model’s veracity, crypto expert and pseudonymous Twitter user ‘DecodeJar’ believes BTC will top $100,000 in the next months, and might reach $250,000 by the end of 2022.
Based on Elliot Wave extensions and Fibonacci retracement levels, DecodeJar believes Bitcoin will reach a “conservative price objective” of $190,233 by June 7.
DecodeJar later cautioned in a follow-up tweet, saying:
“While price and time projections are merely a guide, combining this range with other signs as we approach closer to the peak may allow for a clean exit near the top. I prefer the lower end of the spectrum, around $190,000.”
Regulations are coming in 2022
David Lifchitz, managing partner and chief investment officer at ExoAlpha, provided some insight into the future of the entire cryptocurrency ecosystem. Who said “cryptos will still be around in 2022” in the sense that “governments will not outlaw them”?
“They want to control them to keep cryptos on a tight leash compared to fiat currencies. And also see them as a source of taxation income to replenish their coffers,” Lifchitz remarked.
Lifchitz projected that as the DeFi ecosystem grows and develops new features, banks and insurance companies will be compelled to alter their business models in order to stay competitive. While “middle-man enterprises will be more at risk as DeFi makes them redundant”.
Moreover, Lifchitz raised misgivings about the NFT space’s capacity to maintain its lightning-like pace of expansion. And he addressed some of the deeper issues that regulators may have going forward.
“I can’t help but worry if they’re being utilised for money laundering now that it’s grown so heated… I get that there is a lot of money floating around. Thanks to central banks that want a home, but the NFTs in 2021 remind me of the mid-1998 Dot.com era; there’s still opportunity for a parabolic price rise followed by a bust.”
While it appears that we are on our way to a future that mirrors scenes from the film Ready Player One “where individuals seek refuge in a virtual world because their true reality is horrible”, our world is still “years away,” according to Lifchitz.
The trend of mass adoption is mostly to continue
Despite signs of short-term instability, Loukas Lagoudis, managing director of ARK36, crypto and digital assets hedge fund, believes “that the crypto market’s general bullish trend will continue in 2022”.
“In the coming year, institutional investors’ continued use of digital assets. As well as their further integration with existing financial systems. Will be the key drivers of growth in the crypto market,” Lagoudis said. Institutions are expected to prefer “digital assets over gold as a reserve asset” in 2021, according to reports.
According to Lagoudis:
“In addition, given the rising inflationary economic climate and falling bond yields, we expect investors to consider digital asset allocation as part of their risk management plan. Particularly given the continuous outperformance of digital assets over traditional asset classes.”
According to Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, “the trend appears to be favouring blockchains. That focus on performance, dApp development, and are somewhat more centralised”.
This is a significant divergence from prior patterns, according to Bonnefous. Which favoured initiatives “centred on security, store of value, and decentralisation, such as BTC and even Ether”.
According to Bonnefous:
“In general, the industry tends to place a higher priority on business agility and cost-effectiveness than blockchain purity. Which is a considerable change from previous years. This winning relative value transaction is very certain to last into the new year.”