What will 2022 be like for digital currencies? From Bitcoin prices to legislation

In 2021, the digital currency market has taken great strides towards greater acceptance. Now that 2021 is coming to an end, analysts are setting their price targets for 2022.

To Report Kevin Telegraph: Many analysts have argued that the price of bitcoin will reach $ 100,000 by the end of 2021, and while it now seems unlikely, many investors expect the price to rise before the second quarter of 2022. Pass this key level.

Here are some bitcoin price forecasts for 2022.

Bitcoin still has a chance to reach $ 100,000

Ever since PlanB, a well-known analyst, predicted the bitcoin price to reach $ 98,000 by the end of November, using the S2F model, it went wrong. Other analysts are more cautious about bitcoin price forecasts. Of course, it should also be noted that the accumulation model forecasts for the months of August (August) to October (October) were completely correct.

While some traders question the credibility of the accumulation flow model, an analyst nicknamed DecodeJar on Twitter has said he still thinks bitcoin will reach $ 100,000 in the next few months. According to this analyst, the price of bitcoin may reach $ 250,000 by the end of 2022.

Relying on Elliott’s wave theory and Fibonacci correction levels, Dekodjar expects the price of Bitcoin to reach $ 190,233 by June 7 (June 17, 1401).

He wrote on Twitter:

Forecasts of future time and price are just a guide; But as we go further, combining this domain with other indicators helps us to have a clean exit near the peak. I prefer the end of this trend to the $ 190,000 level, which is more cautious.

Legislation for digital currencies in 2022

David Lifchitz, CEO of ExoAlpha, said of the future of the entire digital currency ecosystem that digital currencies will stay with us in 2022. His main point is that “governments will not ban digital currencies.”

Lifchitz explained that governments want to regulate digital currencies so that they can narrow the field compared to Fiat currencies. In addition, governments think that digital currencies are a source of tax revenue to fill their coffers.

As the defense ecosystem continues to grow and new capabilities develop, Lifchitz predicts that banks and insurance companies will be forced to adapt their business models to stay competitive. Intermediary businesses (such as banks) are more at risk; Because the defense industry is making it useless.

Regarding the extreme excitement of the NFT space, Lifchitz is concerned about whether the sector is capable enough to continue to grow at such a rapid pace. He also pointed to deeper problems that lawmakers may face.

He said:

The field is so hot that it is no longer possible to know whether NFTs are being used for money laundering. I know that a lot of money has been poured into the market thanks to central banks, and that money has to find a place, but the NFTs in 2021 remind me of the .com bubble in mid-1998. There is still a possibility that prices will rise more sharply and then the market will fall.

Regarding the upheaval of the emerging world of Metavars, Lifchitz said that it seems that we are moving towards a future where scenes are similar to “Ready Player One” in which people are terrified of the real world. , Take refuge in the virtual world. The fact is that “our world is still years away from such a world.”

Public acceptance of digital currencies continues

Loukas Lagoudis is the Executive Director of the ARK36 Risk Insurance Fund. He firmly believes that despite the signs of short-term weakness in the digital currency market, the upward trend of this market will continue in 2022.

Lagodis explains that the continued acceptance of digital assets by institutional investors and their greater interaction with the traditional financial system are the most important reasons for the growth of the digital currency space next year. Institutional investors began using digital currencies instead of gold in 2021 to maintain the value of their capital.

Lagodis said:

In addition, because digital assets have always performed better than traditional assets, we expect investors to use capital allocation to digital assets as part of their risk management strategy. Inflationary economic climate and declining bond yields are some of the reasons why investors are encouraged to do so.

Jean-Marc Bonnefous, Tellurian ExoAlpha’s asset manager, said the trend seems to be in the interest of blockchains that focus on network performance and application development and are somewhat more focused than others.

According to Benfus, the current trend has changed significantly compared to previous trends. In the past, the market focused on projects that were decentralized, such as Bitcoin and even Atrium, with an emphasis on security and value storage.

Benfus said:

Basically, the market seems to be looking for trade flexibility and cost-effectiveness instead of a full-blown China block. This is a big change from previous years. The success of business ideas is likely to continue into next year.