Unlike other risky assets, at the end of the year, the Fed’s monetary policy will be the most important factor that will play a key role in the outlook in 2022 of cryptocurrencies, which regressed somewhat and followed a horizontal course with the messages given by the Fed, which became hawkish at the end of the year.
How far will Jerome Powell’s FED take monetary tightening, which wants to rein in inflation? The answer to this question will be decisive for Bitcoin to continue its 60% rise in 2021 and mark the new year.
Another school of thought is Meta Platforms Inc. (formerly Facebook) and Apple Inc. He predicts that cryptocurrencies will continue to rise regardless of macroeconomic balances in an environment where technology giants such as tech giants are increasingly focusing on the metaverse and consumers’ interest in NFTs is piling up. Bitcoin rose 0.5 percent on Monday morning to trade around $47,250.
Here are the views of four market experts on the token and crypto universe in 2022;
Technical analysis points to a bull market in Bitcoin
Fairlead Strategies LLC Co-Founder Katie Stockton said, “The indicators we follow for long-term trends say that Bitcoin will continue its upward trend in the long run,” said Katie Stockton, “We predict that the uptrend will protect itself in the long run and hard upward breaks may allow rises that can reach $ 90 thousand. “Although there are signs that the downward movements will end in the short term, there is still the possibility of a corrective action.”
The Fed and the Metaverse
“The number one factor that will affect Bitcoin in 2022 will be Central Banks Policies,” said Antoni Trenchev, Managing Partner of crypto platform Nexo. “Cheap credit, which has tremendous effects on cryptocurrencies, is not going anywhere anytime soon because it will cause a negative reaction in the Fed bond market. and it does not have the backbone to take the decisions that will cause a 10-20 percent decrease in stocks.
Trenchev predicts that 2022 will be turbulent, but Bitcoin will reach $100,000 by the end of June. However, he states that it will be difficult for tokens like Solana and Avalanche to replicate the exponential gains they made in 2021, instead saying that “these start-ups filled with arrogance, attitude and corrupt narratives” will face growth challenges similar to those experienced by cryptocurrencies like Ethereum and cryptocurrencies.
Stating that the main subject he is excited about for 2022 is the Metaverse, Trenchev noted that Metaverse has a great potential and that he thinks the main topic of the next year will be the Metaverse infrastructure and NFTs, which will be an important part of the economy there.
Skeptics
“Although I expect the speculative enthusiasm to continue in the crypto world, this market will face a much more challenging environment in 2022, similar to the bubble valuations in technology,” said Jeffrey Halley, Senior Market Analyst at Oanda Asia Pacific. Other central banks will follow this decision. This will put the claims that crypto money is an alternative to fiat money to the test.
The expectation of regulation, which is a constant threat on the crypto world, to be honest, the emergence of a new money introduced as the technology of the future every week shows that what is effective in the market is not blockchain technology, but speculation. I still have a hard time figuring out how anyone could become the technology of the future. This trend may continue for a while in 2022, but this does not change the fact that the king is naked.”
App Store Expectations
“The race to become the app store of the crypto world has begun,” said Chainanalysis Chief Economist Philip Gradwell, “The most important lesson learned from Web 2.0 was that consumers love platforms, and I don’t think this will change in Web 3.0. . Currently, there is no crypto platform that has a customer relationship and brings suppliers together. In 2022, many companies will compete to create this platform, but I predict that Coinbase, which integrates DeFi and NFTs, will take the lead in this area,” he commented.
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