2021 was a volatile year for bitcoin, notching up new highs, and then registering steep drops. After reaching highs of $69,000 in November 2021, bitcoin seems to have dropped over 40% in January, as of the last day of January 2022, bitcoin was only trading at $38,500.
But what can investors expect for bitcoin in 2022? In this article, we’ve reviewed the good, bad, and the worst of bitcoin forecasts. Read on to find out what might be in store for bitcoin in 2022.
More People Will Adopt Bitcoin
It’s estimated that over 500 million people across the globe will adopt bitcoin by the end of 2022. According to Flori Marquez, CoinTelegraph, BlockFi cofounder, a better understanding of the sector and regulatory clarity will drive up the adoption of bitcoin.
Also, more countries will most likely follow El Salvador and adopt bitcoin as a legal tender. And many investors, like Abhimanyu Kumar, Naavik cofounder, the growth of blockchain gaming will result in more people adopting crypto. The overall nature of the medium will lead to an adoption curve, mainly because it’s entertaining. It makes cryptocurrency easy to understand.
However, Peter Schiff a famous bitcoin critic and founder of Euro Pacific Capital stated that the increased investor interest in bitcoin is a result of the increased news coverage.
Bitcoin To Lose Market Dominance
One thing that becomes clear back in 2021 is the fact that the crypto market isn’t just about bitcoin. In early 2021, the bitcoin market climbed 70% of the overall market cap. Today, that figure is about 40%. This is largely because of the thousands of new crypto coins, which have been created, but largely because of the increased growth of intelligent contract platforms such as Solana (SOL), Cardano (ADA), and Ethereum (ETH). More projects are currently being built on these platforms, which gives them a bigger market share.
The co-founder and president of Anchorage, Diogo Monica, told MarketWatch that it’s no longer risky investing in Ethereum or bitcoin, we are talking about Non Fungible Tokens (NFTs), capital preservation, remittances, and Decentralized Finance (DeFi).
There are numerous moving parts in cryptocurrency, from the flourishing NFT sector to the growth of metaverses and DeFi. Bitcoin might serve as the digital gold for this fast-growing sector. Bit it could get replaced by new faster crypto coins.
Some digital maximalists such as Jack Dorsey still feel that many other cryptocurrencies go against the initial spirit of the main digital currency. He promotes bitcoin over other currencies, believing that the first every crypto (bitcoin) will one day be the native currency.
Bitcoin To Hit $100,000
It was very easy to predict that bitcoin will reach $100,000, especially after it rose to an all-time high of $69,000 in November 2021. However, with the 40% fall since then, predicting where it will go next has become harder.
Some extreme bitcoin skeptics are now saying that bitcoin will fall to $10,000 in 2022, but the market is still showing that the BTC will rise to $100,000 as many analysts predicted in 2021. Only that it might take longer than expected.
Currently, bullish experts are reassessing the cryptocurrency market as major brands like Nike are considering ways to monetize their products and services in the new digital metaverse. The most recent rise of metaverse experiences, products, worlds, and games has boosted the popularity of cryptos, which has eventually changed investor sentiments about crypto.
Although many investors are reluctant to predict a date and number, there is no doubt that bitcoin will ultimately increase its value.
Increased Regulation Is On The Cards
So far, we’ve considered both sides of predictions (good and bad), but some people believe that more regulation of the crypto market isn’t inevitable. However, the opinion is divided on whether more regulation will be a good thing.
Most industry players still hope that increased regulation of the crypto market will instill confidence among investors. Some investors like Mark Cuban, say that more regulation is essential, particularly around stablecoins.
Moreover, the vice-chairman of Berkshire Hathaway, Charlie Munger, advocates for more measures. He recently supported China in their most recent measures of completely banning the coin.