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Analysts say 2022 will be ‘defined by agility and cost-efficiency’ instead of ‘blockchain purity’

December 27, 2021No Comments


The entire crypto market made big strides towards mass adoption in 2021 and now that the year is almost complete, analysts are setting their price targets for 2022.

Many analysts supported calls for $ 100,000 (BTC) before the end of 2021 and, although it seems unlikely, most investors expect the key price level to be addressed before the second quarter of 2022.

Here's a look at some of the Bitcoin price predictions that analysts are expecting for 2022.

Bitcoin is still on track to break above $ 100,000

Analysts have been more reluctant to provide impromptu Bitcoin predictions from PlanB's stock-to-flow model. incorrectly predicted priced at $ 98,000 BTC by the end of November, even though the model had been perfect from August to October.

While some traders now question the validity of the stock-to-stream pricing model, crypto analyst and pseudonymous Twitter user 'DecodeJar' still see that BTC will exceed the $ 100,000 price in the coming months and according to the analyst, the price could go up. up to $ 250,000 by the end of 2022.

As shown in the above tweet, DecodeJar sees that Bitcoin will hit a "conservative price target" of $ 190,233 by June 7 based on the Elliot Wave extensions and Fibonacci retracement levels.

In a follow-up tweet, DecodeJar warned that:

“Future price and time projections are only a guide, but combining this range with other indicators as we get closer may allow for a clean exit near the top. I am in favor of the more conservative end of the scale ~ $ 190,000 ”.

Regulations will arrive in 2022

David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, addressed the future of the entire cryptocurrency ecosystem, stating that "cryptocurrencies will continue to exist in 2022" in the sense that "governments will not ban them."

Instead, Lifchitz suggested that they "want to regulate them to keep cryptocurrencies at bay against fiat currencies and also see them as a source of taxable income to replenish their coffers."

As the DeFi ecosystem continues to grow and develop new capabilities, Lifchitz predicted that banks and insurance companies will be forced to adapt their business models to remain competitive, while “intermediary companies are at increased risk as DeFi fires them. "

When it comes to the frenzy that the NFT space has been, Lifchitz voiced reservations about the sector's ability to continue its breakneck pace of growth and addressed some of the deeper concerns regulators may have going forward.

Lifchitz said:

“It has gotten so hot that you can't help but wonder if they are not being used for money laundering ... I know there is so much money hanging around thanks to central banks having to find a home, but the NFTs in 2021 remind me From the Dot.com era to mid-1998, there is still room for a parabolic price boom, then a crash. "

As for the hype surrounding the emerging Metaverse, Lifchitz stated that while it looks like we are heading into a future that could resemble scenes from the movie. Ready Player One "Where people take refuge in a virtual world because their real world is terrible", our world is still "years away from that."

Related: Creating a path for the growth of the cryptocurrency market through better regulation

Mass adoption is likely to continue

Despite signs of short-term weakness, Loukas Lagoudis, CEO of crypto and digital asset hedge fund ARK36, "strongly believes that the overall uptrend of the crypto market will continue into 2022."

Lagoudis suggested that "the sustained adoption of digital assets by institutional investors and their further integration into legacy financial systems will be the main drivers of the growth of the crypto space in the coming year" as institutions were seen as starting to favor " digital assets over gold as a reserve asset ”in the course of 2021.

Lagoudis said:

"Additionally, as digital assets have consistently outperformed traditional asset classes, we predict investors will see allocation to digital assets as part of their risk management strategy, especially given the increasingly inflationary economic environment and declining of bond yields. "

According to Jean-Marc Bonnefous, Head of Asset Management at Tellurian ExoAlpha, he suggested that "the trend appears to be favoring blockchains that are focused on performance, dApp development and that are somewhat more centralized."

Bonnefous saithis represents a significant change from past trends that were more focused on projects "focused on security, storage of value, and that are more decentralized like BTC and even Ether."

Bonnefous said:

“Basically, the market seems to be betting on business agility and profitability rather than the purity of the blockchain, a big change from the last few years. This relative value winning trade is likely to continue into next year. "

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.