On Tuesday, the price of bitcoin in Hong Kong was around $46,100.
New Delhi: Central bank policy is playing a key role in the debate about the token’s outlook in 2022, after the Federal Reserve took some steam off cryptocurrencies at the end of the year, largely abandoning other riskier assets.
To what extent will Jerome Powell’s Fed tighten policy to curb inflation? Some analysts say the answer to that question will help determine whether bitcoin follows its 60% gain in 2021.
Another view holds that since Meta Platforms Inc. (formerly Facebook) to Apple Inc. As companies delve deeper into the metaverse and consumers continue to hoard in non-fungible tokens, that will push crypto to higher levels regardless of macroeconomic forces. Last year saw the sale of an NFT artifact for $69.3 million at Christie’s, or a loosely organized group of crypto investors, battle billionaire Ken Griffin at auction for a copy of the US Constitution.
As of 9:52 a.m. on Tuesday in Hong Kong, bitcoin was trading at around $46,100, up about 0.2% that day. Here, four market-viewers discuss their vision for the token and the wider crypto universe in 2022:
Bullish Bitcoin Technicals
“We are bitcoin long-term based on our long-term trend-following gauge,” Katie Stockton, founder and managing partner of Fairlead Strategies LLC, said in an email.
“We believe a longer-term uptrend will sustain itself and a more decisive breakout to new highs will allow for an impressive measure-move projection of around $90,000. For now, a corrective phase still holds a hold, however. The short-term downside is potential signs of exhaustion.”
The Fed and the Metaverse
“The number 1 influencing factor for bitcoin and cryptocurrencies in 2022 is central bank policy,” Antoni Trenchev, managing partner at crypto lender Nexo, said in an email. “Cheap money is here to stay which has huge implications for crypto,” because “the Fed doesn’t have the stomach or backbone to withstand a 10%-20% collapse in the stock market, as well as in the bond market.” There is an adverse reaction.”
Tranchev sees a choppy run in 2022, yet bitcoin is projected to reach $100,000 by the end of June. He also does not expect tokens like Solana and Avalanche to deliver the same exponential gains in 2021, but rather that “these upstarts – with ego, attitude and funky narratives – will face the same scaling challenges that Ethereum and other older protocols face.” lay down.”
“I’m really excited in 2022, that’s the metaverse,” he wrote. “The ‘birth’ and use of the word metaverse is a beautiful mess, and has a lot of potential. This will be one of the broad themes of next year: metaverse, infrastructure building and then the NFTs that will be part of the economy there.
skeptical
“While I expect speculative enthusiasm in the crypto space to continue, it faces a more challenging environment in 2022, like bloated technology valuations,” Jeffrey Haley, senior market analyst at Oanda Asia Pacific, said in an email. “The primary reason is the introduction of interest rate normalization by the Federal Reserve, but other major central banks are likely to follow suit. This will challenge d’tre that crypto is an alternative to fiat money.”
“Hanging over the crypto space threatens more regulation and frankly, there is a new coin coming out every week that is the ‘next big thing’ and driven by speculation and not blockchain, I am struggling to see that.” That’s how any of them would be,” Haley said. The music may continue to play till 2022, but Badshah is still not wearing any clothes.”
waiting for app store
“The race for cryptocurrency to become an app store is on,” Philip Gradwell, chief economist at Chainalysis, said in an email. “One of the big lessons of Web 2.0 was that consumers love platforms, and I don’t think that is going to change for Web 3.0. There is currently no crypto platform that owns customer relationships and aggregates suppliers. I anticipate that in 2022, many companies will race to build this platform, with Coinbase being the lead as it integrates DeFi and NFTs.”
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