Central bank policy will play an important role in the discussion of the 2022 token outlook after the Federal Reserve gains momentum from cryptocurrencies with a restrictive shift at the end of the year and is largely spared from other risk assets.
How much will the Fed Jerome Powell tighten monetary policy to curb inflation? According to some analysts, the answer to that question will help determine if Bitcoin will follow a 60% increase in 2021 and will be an even better year.
Another idea is that as companies from Meta Platforms Inc. (formerly Facebook) to Apple Inc. dig deeper into the Metaverse and consumers continue to accumulate non-alternative tokens, cryptocurrencies will be pushed up regardless of macroeconomic power. Witness the $ 69.3 million sale of NFT artwork that auctioned a copy of the US Constitution that billionaire Ken Griffin fought last year in Christie’s or a group of loosely organized crypto investors.
Bitcoin traded in Hong Kong at 9:52 am on Tuesday for about $ 46,100, up about 0.2% from that day. Here, four market watchers are discussing the 2022 tokens and the outlook for the wider crypto world:
Bullish Bitcoin Technicals
“We are bullish Bitcoin long-term, based on our long-term trend-following gauges,” Katie Stockton, founder and managing partner of Fairlead Strategies LLC, said in an email.
We believe that the long-term upward trend will continue and a more determined breakout to the new high will enable an impressive measurement forecast of around $90,000. At this point, the revision phase is still in progress medium, but there may be signs of short-term fatigue below.
The Fed and the Metaverse
The biggest influence on Bitcoin and cryptocurrencies in 2022 is central bank policy,” Antoni Trenchev, managing partner of crypto lender Nexo, said in an email. Cheap money is here to stay which has huge implications for crypto as the Fed lacks the courage and backbone to withstand a 10-20% stock market plunge and a negative bond market reaction.
Trenchev is having problems in 2022, but Bitcoin is expected to reach $100,000 by the end of June. He also don’t expect tokens like Solana and Avalanche to bring the same exponential profits as in 2021, but “these start-ups are full of arrogance, attitudes, funky stories, Ethereum and Faces the same scaling challenges faced by other older protocols.
What I’m really excited about in 2022 is the Metaverse, he wrote. “The use of the terms” birth “and the metaverse is confusing and has many potentials. It will be one of the comprehensive themes for next year. Metaverses, infrastructure construction, and NFTs that form part of the economy there.
The Skeptic
Jeffrey Halley, senior market analyst at Oanda Asia Pacific, said in an email, We expect speculative enthusiasm in crypto space to continue, but much more in 2022, like the bloated tech evaluation will face a difficult environment. The main reason is the start of the Federal Reserve’s start of interest rate normalization, but other major central banks could follow suit, challenging the reason that crypto is an alternative to fiat money.
Hanging in the crypto space risks tightening regulations, and to be honest, new coins come out every week, so it’s the” next big thing, driven by speculation, not blockchain. I’m having a hard time seeing one of them, do it, Halley said. I continue to believe that cryptocurrencies are the biggest case of groupthink of economic stupidity in history. Music could continue to play part of 2022, but the emperor is still undressed.
Awaiting an App Store
Philip Gradwell, Chief Economist at Chainalysis, said in an email, “The cryptocurrency app store competition continues.” The main lesson of Web 2.0 was that consumers love the platform, and I don’t think this will change with Web 3.0. Currently, there is no crypto platform that owns customer relationships and aggregates suppliers. By 2022, many companies will struggle to build this platform and Coinbase predicts that it will lead the integration of DeFi and NFT.
