The ups and downs have been driven by nationwide crackdowns, nation-state adoption, condemnation from high-profile investors like Peter Schiff, and endorsements from the likes of Elon Musk.
Platforms like PayPal have opened up crypto to hundreds of millions of retail investors, while the launch of the first ever bitcoin ETF on the New York Stock Exchange drew in a new legion of professional traders.
So what does 2022 hold? Could a long-awaited Spot bitcoin ETF see price go parabolic as more traditional investors jump on board? Or could mainstream adoption grow exponentially as more countries and companies open up to crypto? Or could it all collapse like it did in 2013 and 2017 and usher in a crypto winter?
We’ve pooled a range of experts to hear their predictions and forecasts for the coming year. They include: Marcus Sotiriou, analyst at UK based digital asset broker GlobalBlock; Steve Ehrlich, CEO of cryptocurrency platform Voyager Digital; and Alexey Kirienko, CEO of investment firm EXANTE.
Is another crypto winter coming?
Marcus Sotiriou: “In my opinion we will not have another crypto winter like there was after 2017. This is because the key difference between the market now and then is the fact that so many institutions are involved in the space now. Access to retail has been made significantly easier through the likes of PayPal and Square offering crypto products to their clients, as well as institutions investing for their own balance sheet. This means that the structure of the market is completely different. The proportion of retail investors is lower, who are more likely to panic and sell their investments when sentiment is bearish.”
Steve Ehrlich: “I think the markets will see ups and downs next year, with the ups outweighing the downs. My best guess is the next true bear cycle is further out, most likely not until 2023. Adoption is too far along this time around, which may stave off and limit the volatility to the downside.”
Alexey Kirienko: “The early parts of 2022 might see cryptos struggle amid concerns about the overall macroeconomic backdrop, with Covid-related uncertainty and inflation both remaining high, and central banks not sure whether to be aggressive in tacking inflation or remain patient… But as crypto prices have become relatively inexpensive in recent weeks and given the still-high appetite for cryptos from consumers and institutions alike, dip-buyers will be keen to take advantage of downbeat prices. While it is impossible to say when exactly will the tide turn positive, we think it will be around the start of Q2.”
Where is bitcoin’s price heading in 2022?
MS: “Rather than focusing on bitcoin’s price one year out, I am more interested in the price of bitcoin five-10 years out where I can see bitcoin hitting $500,000 within that timeframe, however it would not surprise me to see bitcoin above $100,000 at the end of 2022.”
SE: “Next year is pivotal for bitcoin. As the oldest and most well-known cryptocurrency, like it or not, bitcoin is the ‘face’ of crypto to the world. When bitcoin hits new highs, it attracts a lot of attention and price action to the crypto markets as a whole. So I’ll start with my bitcoin price prediction: bitcoin will reach and surpass $100,000 in 2022.”
Best altcoin in 2022?
MS: “I think the best performing layer 1 altcoin in 2022 will be Cosmos (ATOM), due to having significant adoption from major assets currently, like Binance Chain, OkEx, Crypto.com, Terra (LUNA,) Binance Chain (BNB), Crypto.com (CRO), OkEx Chain (OKEx) and Thorchain (RUNE). Cosmos have over $175 billion of digital assets under management. I think the Cosmos ecosystem will continue to flourish in 2022 which will help attract value for the ATOM token.”
SE: “One platform I have my eye on is Avalanche. I think the markets are just now beginning to notice the scale, speed, and efficiency is already present and flourishing with Avalanche. As other platforms grapple with scaling up, there will be investors and users that will flock to platforms that can handle the throughput.”
AK: “While we expect DeFi to grow further in popularity, metaverse is the new big thing. It has the potential to radically change how people interact online and has huge potential for companies to advertise their products in a new virtual environment. The possibilities are endless.”