For many experts and analysts, the value of bitcoin was going to exceed 100,000 dollars at the end of 2021, but it did not (in fact, it did not even reach half). Moreover, the price of this cryptocurrency has fallen sharply at the beginning of 2022, which reached seven consecutive days of losses, although it has finally exceeded the $40,000 barrier again. For this new year, several authorized voices on the subject have given their opinion to Business Insider of what awaits not only bitcoin, but the rest of digital currencies.
Mike McGlone (Bloomberg Intelligence)
McGlone, senior product strategist at Bloomberg Intelligence, believes bitcoin is in a consolidating bull market, while ethereum’s bull market is more durable. “Bitcoin will face headwinds if the stock market falls, but to the extent that falling share prices pressure bond yields and incentivize more central bank liquidity, cryptocurrency may become the main beneficiary,” he clarifies.
Furthermore, McGlone believes that cryptocurrencies will dominate in 2022 as the asset class outperforms more traditional investments. “We expect the US to embrace crypto in 2022, with proper regulation and related bullish price implications. Compared to broader stocks, which haven’t seen a 10% correction since the 2020 swoon, the crypto market may have relative advantage in 2022,” he wrote in December.
Jesse Powell (Kraken)
Powell, CEO of Kraken, a company dedicated to the exchange of cryptocurrencies, had hoped that bitcoin would reach $100,000 by the end of 2021. Despite the last chapters experienced by this currency, Powell does not believe that there will be a crypto winter just around the corner. Still, if its value drops below $36,000, he thinks it’s time to buy more bitcoins.
“Just look at the 10-year chart and that tells you everything you need to know. It has outperformed every other asset in the world.” In this regard, Powell is convinced that greater general awareness and regulatory clarity could usher in a better year for cryptocurrency.
Furthermore, it is betting on NFTs by 2022, not only because of the aesthetic values and prestige associated with owning some of them, but also because of their use cases, such as provenance tracking or borrowing. “I think next year is really going to be the year of NFTs. If I’m thinking as an investor, what are the platforms and currencies that are going to benefit from that? I think it’s some of these decentralized worlds,” he says.
Hong Fang (Okcoin)
Fang, CEO of Okcoin, a company dedicated to the exchange of cryptocurrencies, said at the time that it was unlikely that bitcoin would reach $100,000 by the end of the year, as expected in certain scenarios. With cryptocurrencies being an emotionally charged market, it is hard to see where the price could go in 2022.
“I still believe that bitcoin is the king of cryptocurrencies just because of its unique value proposition. But at the same time, I think we will continue to see different crypto assets decoupling from bitcoin because investors will start to see different underlying value propositions for different endeavors.” Fang explains.
Tony Fenner-Leitão (Cambrian Asset Management)
For Fenner-Leitão, president of digital asset investment firm Cambrian Asset Management, 2022 will likely focus on regulation, which could bring more clarity and transparency to the crypto industry.
“The regulatory aspect is important in many different ways. It extends from the trading of the tokens, their custody and the regulation of the companies involved. All of that is very useful and gives people the confidence that they at least understand and have direct view of the stability of these companies,” he says.
Kyle Samani (Multicoin Capital)
Samani is managing partner of Multicoin Capital, a crypto asset investment firm. His hedge fund crypto is banking on solana (SOL), helium (HNT), and the graph (GRT) to lead the pack of tokens backed by strong tech fundamentals.
Regarding bitcoin, Samani is optimistic and believes that we have not yet seen highs for bitcoin, ethereum or solana. “I think we will continue to see bitcoin act differently than the rest of the market. The traditional views of cryptocurrencies were just that the other assets had leveraged exposure to BTC. The thing is now all of these assets do different things, and have different functions, different uses”, he clarifies.
Armando Aguilar (Fundstrat Global Advisors)
Aguilar, vice president of digital asset strategy at research firm Fundstrat Global Advisors, had expected bitcoin to hit $70,000. However, he is confident that it will hit €100,000 by the first half of 2022 as concerns about institutional adoption and inflation persist.
In the meantime, he believes ethereum will break above $9,000 fueled by continued growth in decentralized finance, NFTs, and metaverse-related activities. For his part, Tom Lee, president of Fundstrat Global Advisors, said in an article published in Bloomberg Bitcoin will hit $100,000. Even if things go well, it could be as high as $168,000.
Brian Mosoff (Ether Capital)
Mosoff, CEO of Ether Capital, a company specialized in technological infrastructure, tells of the importance that the solana cryptocurrency can have, which must be closely watched. “There is a huge community around this cryptocurrency. There is an argument that they use a different programming language, Rust, which may have more flexibility or more developer support for people who are not familiar with Solidity, the language of ethereum. So that solana, to me, is kind of a precursor to this group of ethereum competitors,” he explains.
Kevin Kelly (Benchmark Investments)
For the CEO of the financial firm Benchmark Investments, ethereum will take first place from bitcoin this year. “We have absolutely no doubt that a reversal can happen this year,” said the expert in Market Watch. For this to happen, the capitalization of ETH, which is at 390,000 million dollars, would have to exceed 815,000 of BTC.
The feat is not unreasonable for Kelly, as he explains, the momentum that decentralized finance is taking, added to blockchains, non-fungible tokens or NFTs, allow us to forecast the growth of Ether. “Over the next three to five years, we believe that the growth of blockchain applications will be unprecedented and ETH will absolutely have a role to play in this area,” he said.
“We absolutely believe that Ether can outperform Bitcoin’s total market value this year,” he said. In one year ETH increased its price five times (increased by 400%) and, while in December 2020 it was trading at $636, now its price is $3,279. The price of bitcoin also rose, but more slowly (by 60%). In December 2020 it cost $26,000 and now it is listed at $42,000.
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