What can we expect for the cryptocurrency market in 2022? What predictions can be made?
The records of 2021
The year 2021 has been an exceptional year for the entire cryptocurrency market, starting with the queen Bitcoin, which in November reached its all-time high at $69,000 and was up 72% from the previous year.
But all cryptocurrencies from Ethereum to Solana, Monero, Polkadot Cardano, and Avalanche have had exceptional returns during 2021. The total capitalization of cryptocurrencies exceeded $3 trillion in value.
All this, despite the ban by China and the many investigations carried out by regulators halfway around the world against cryptocurrency companies for alleged financial irregularities. But 2021 was also the year of the first Bitcoin ETFs listed on Wall Street that opened the market to large institutional investors.
What will happen to the cryptocurrency market in 2022? Forecasts and trends
2022 according to many experts, despite the declines in the last part of 2021, could be another very positive year for the major cryptocurrencies.
Bitcoin is steadily above the 200-day moving average, a clear bullish signal for technical analysis experts. Moreover, the selling pressure from the Chinese markets, which many believe was one of the main causes of the November and December declines, is expected to ease as early as January of the new year, likely leading to a new rally in Bitcoin and the cryptocurrency market in general.
Vijay Ayyar, vice president of development at exchange Luno, is confident that the U.S. will see the first Bitcoin spot exchange-traded fund (ETF) in 2022.
“The Bitcoin Futures ETF launched this year was widely seen as not very retail-friendly, given the high costs associated with contract renewals of around 5-10%. The increased pressure on this instrument indicates that a Bitcoin Spot ETF could be approved in 2022 primarily because the market is now large and mature enough to support one.”
According to many experts, it would be realistic to predict that Bitcoin prices in 2022 could touch $100,000 and Ethereum prices could exceed $10,000.
Probably a lot will depend, according to analysts, on what the inflation trend will be since cryptocurrencies like Bitcoin are becoming more and more like an anti-inflationary tool like gold.
Cryptocurrencies to watch in 2022
But beyond Bitcoin and Ethereum, according to experts, some cryptocurrencies could have the ultimate consecration in 2022; among the most interesting are often mentioned Solana, Avalanche, Polkadot, Monero, and Cardano.
Solana, which in November saw its all-time high at $220, has now been stable at around $250 for a few weeks, but according to experts, its increased adoption, thanks to the growing popularity of NFT and DeFi, could lead to new all-time highs for the most trusted blockchain rival Ethereum.
According to cryptocurrency analyst Nick Ranga, Solana will reach $300 by mid-2022 and nearly double in value by 2023.
Same for Avalanche that in 2021 recorded one of the best as performance among the most capitalized cryptocurrencies and in 2022 could, according to coin price forecast experts, touch $300 from the current $100.
For Cardano, many experts predict that in 2022 its prices could jump from the current $1.3 to over $4. While, for Polkadot, forecasts agree in a doubling of quotations from the current 30 dollars to 60 dollars by the end of 2022.
The post What to expect from the cryptocurrency market: forecasts for 2022 appeared first on The Cryptonomist.