The analysis houses refine their predictions for the financial markets for next year, including forecasts for the cryptocurrency market. If anything has shown the crypto industry in 2021, is that the movements in its valuation are difficult to predict, but so far it has had an upward response to the positive steps of the traditional industry. “After a period of destruction of the last barriers, 2022 should be a year of regulation, consolidation and greater adoption“Bitpanda analysts say.
However, the experts consulted avoid offering predictions about the prices they will conquer, beyond drawing a wide range for bitcoin between $ 40,000 and $ 70,000, according to ‘Bloomberg’. With immediate support at $ 45,500 and $ 47,000 and resistance at $ 50,000, $ 55,000 and $ 60,000. “Rolling the dice or rolling a roulette wheel is probably just as good a tool as another for forecasting the future of prices,” say the experts at AJ Bell, however eight key factors that will influence prices can be isolated.
1. More adoption by companies and countries
“As the digital asset market grows, we anticipate that more companies adopt bitcoin as an asset on their balance sheet and a potential generator of income from mining operations, “say the experts at Van Eck, who foresee further maturation in this regard. They also hope that other emerging market countries will follow in El Salvador’s footsteps, as they may find bitcoin useful. as a monetary tool, and a potential option to avoid some of the negative side effects of relying solely on the International Monetary Fund and the World Bank for debt relief.
Of course, from AJ Bell they influence that “cryptocurrencies are used in a significant way as a means of exchange between companies and consumers, not just as a marketing tool. “
2. More investment products
Likewise, new investment products, such as more exchange-traded funds, could open ways to provide more liquidity to cryptocurrencies and helping establish them as a new asset class for investment managers, which would be a welcome step for this industry. In both cases, “the volatility of ‘cryptos’ is a major sticking point that makes it difficult to see big breakthroughs taking place, when companies have bills to pay in dollars, euros and pounds, and likewise large funds need inform their investors in traditional currencies “, they comment from AJ Bell.
3. More stock market debuts
In 2022, Even More Cryptocurrency Companies Will Go Public, which are preparing to give this exit and in 2022 the trend set by new listed companies will continue in 2021. There is a wide range of businesses in which crypto companies can participate, from exchanges to miners of digital assets and companies of pay. “As the cryptocurrency market continues to grow and develop, we anticipate that the market will grow with new quotes, and it will also change as companies gain and lose market share,” they say from Van Eck.
4. More regulation
It is likely that the regulatory activity is negative for these assets. “Regulators do not like the idea of a financial system that can be used to launder money, defraud consumers and that, ultimately, could cause large losses among investors,” they point out from AJ Bell. The Restriction measures in India and China could be replicated elsewhereRegulators and governments are generally going to set their sights on cryptocurrencies as they become more integrated into the traditional financial ecosystem.
5. Central bank digital currencies
Central banks, including in the UK, are also looking into launching their own digital currencies, which would be negative for cryptocurrenciesAs these could usurp some of the perceived benefits of bitcoin and others, such as the speed of payments and the costs of transactions, especially across borders. Experts foresee that during 2022 the investigations of the monetary supervisors in this regard will continue to be deployed.
6. More steps to limit the environmental impact of cryptocurrencies
The environmental piece of the puzzle could swing in any direction, being the CEO of Tesla, Elon Musk, the somewhat unpredictable barometer in this particular question, they indicate from AJ Bell. Unfortunately, “the cryptocurrency industry continues to suffer the consequences of misinformed and misguided concerns, in particular those related to the use of energy required to mine bitcoin.” As the debate continues, we believe that cryptocurrency miners will continue to lead the way. path in terms of green energy adoption and financial inclusion “, they add from Van Eck.
7. More uses for NFTs
The NFTs (non-fungible tokens) had a very successful year in 2021, but we believe that the best is yet to come, they assure from Van Eck. NFTs hit mainstream culture with millions of users, and the next major use cases to emerge will be sale of sports tickets, loyalty points and electronic sports.
8. More ethereum and its protocol change
In the early stages of 2022, the Efforts by the Ethereum network to switch from the current proof-of-work model to the more sustainable model proof of participation. Experts consulted explain that this will drastically alter the landscape for Ethereum-focused miners. Rather than wasting energy solving high computational load problems, the new protocol will provide greater energy efficiency, increased network capacity, lower barriers to entry, and greater immunity to centralization for the Ethereum blockchain. One of the main downsides of the upgrade is that mining this network will become unprofitable, which means that miners focused on this model will have to switch to greener pastures.
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Eight events that will move bitcoin and cryptocurrencies in 2022