In 2022, ‘agility and cost efficiency’ will be preferred over the ‘purity of decentralization’ of the blockchain
In addition to $ 100,000 per single Bitcoin, analysts predict that in 2022 the cryptocurrency market will focus more on “cost efficiency” and “entrepreneurial agility”
• Over the past year, now almost over, the entire cryptocurrency market has made great strides towards mass adoption: now it’s time to start setting price targets for 2022.
Numerous analysts had predicted a close of the year with a price of 100,000 dollars per single Bitcoin (BTC), and now this target has been moved to the second quarter of 2022.
Below, we will analyze some predictions for 2022.
Bitcoin is still on track to exceed $ 100,000
Although PlanB’s Floor Model accurately predicted the price of BTC from August to October, following a missed $ 98,000 milestone for November, analysts are now more reluctant to provide forecasts for Bitcoin.
While some traders question the validity of the stock-to-flow pricing model, crypto-analyst “DecodeJar” still expects $ 100,000 per BTC in the coming months, peaking at $ 250,000 by the end of 2022:
As shown in the tweet above, DecodeJar expects a “conservative price target” of $ 190,233 by June 7 based on Elliot wave extensions and Fibonacci retracement levels.
In a subsequent tweet, DecodeJar warned that:
“Future and temporal price projections are only a guide, but the combination of this range with other indicators, as we get closer, can allow for near-top profit taking. I prefer the more conservative end of the range, ~ $ 190,000 “.
Regulations coming for 2022
An in-depth study on the future of the entire crypto ecosystem was addressed by David Lifchitz, managing partner and chief investment officer of ExoAlpha, according to whom “cryptocurrencies will still be around in 2022”, implying that “governments will not ban them” .
Instead, Lifchitz suggests they want to “regulate them to keep cryptocurrencies in check against fiat currencies, seeing them as a source of taxable income to fill their coffers.”
“The world needs standards to address crypto risks and the @FinStbBoard should develop a global regulatory framework. Read more about the necessary policies in the latest #IMFBlog ”
As the DeFi ecosystem continues to grow and develop new capabilities, Lifchitz predicts that banks and insurance companies will be forced to adapt their business models to remain competitive because they are “made redundant by DeFi.”
Regarding the NFT industry frenzy, Lifchitz expressed skepticism about the industry’s ability to continue its pace of growth, addressing some of regulators deepest concerns:
“It has become so hectic that one cannot help but wonder if these services are not being used for money laundering … I know there is a lot of money waiting to find a home thanks to central banks, but NFTs in 2021 remind me of the Dot.com era in mid-1998. There is still room for a parabolic price boom, and subsequent capitulation. ”
Regarding the hype around the emerging Metaverse, Lifchitz stated that in reality we are still very far from experiencing the scenes of the movie Ready Player One, “where people take refuge in a virtual world because the reality is terrible”.
Mass adoption is likely to continue
Despite signs of short-term weakness, Loukas Lagoudis, executive director of the crypto hedge fund and digital assets ARK36, “firmly believes that the general uptrend for the crypto market will continue into 2022”.
Lagoudis, considering institutions’ preference for digital assets over gold as a store of value, suggested: “The sustained adoption of digital assets by institutional investors and their further integration into traditional financial systems will be the main growth driver of the crypto sector in the next year “.
“Additionally, given the continued outperformance of digital assets versus traditional asset classes, we expect investors to see digital asset allocation as part of their risk management strategy, especially given the increasingly inflationary economic environment and falling yields. bonds “.
Jean-Marc Bonnefous, head of wealth management at Tellurian ExoAlpha, suggested that “the trend seems to favor performance-focused, dApp development and more centralized blockchains.”
For Bonnefous, this represents a significant change from past trends, more focused on projects “focused on safety. a, store of value and more decentralized, such as BTC and Ether “.
“Basically, the market seems to be projecting towards business agility and cost efficiency, rather than the purity of the blockchain: a big change from previous years. This winning trend of relative value will probably continue into the next year ”.
The opinions expressed herein are solely of the author and do not necessarily reflect those of Cointelegraph.com. Every investment carries risk – you should conduct your research before making a decision