According to many experts and analysts, the value of bitcoin was going to exceed $100,000 by the end of 2021, but these predictions did not come true and the price of bitcoin did not even reach half that figure.
What is more, the price of this cryptocurrency has fallen sharply at the beginning of 2022, and reached seven consecutive days of losses, although it has finally surpassed the $40,000 barrier again. For this new year, several authoritative voices in the cryptocurrency world have issued their opinion on the matter.
If you want to know what the experts think about the price of bitcoin, then read on:
Jesse Powell (Kraken)
Jesse Powell is the CEO of Kraken, one of the most robust cryptocurrency exchanges. Powell was one of the many who expected bitcoin to reach $100,000 by the end of 2021. Despite what has happened in recent months, Powell does not believe there is a crypto winter around the corner. Still, if its value falls below $36,000, he believes it's the right time to buy more bitcoins.
"Just look at the 10-year chart and that tells you all 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.
Moreover, he is betting on NFTs by 2022, not only for the aesthetic values and prestige associated with owning some of them but also for their use cases, such as provenance tracking or lending. "I think next year will be the year of NFTs. If I'm thinking like an investor, what are the platforms and coins that are going to benefit from that? I think it's some of these decentralized worlds," Powell opines.
Mike McGlone (Bloomberg Intelligence)
McGlone, the senior product strategist at Bloomberg Intelligence, believes bitcoin is in a bull market that is in the process of consolidating, while he sees ethereum's bull market as more durable. "Bitcoin will face headwinds if the stock market falls, but to the extent that falling equity prices put pressure on bond yields and incentivize greater central bank liquidity, the cryptocurrency may become the main beneficiary," McGlone clarifies.
Furthermore, McGlone believes cryptocurrencies will dominate by 2022 as this asset class outperforms more traditional investments. "We expect the US to embrace cryptocurrencies in 2022, with appropriate regulation and related upside price implications. Compared to general stocks, which have not had a 10% correction since the swoon occurred in 2020, the crypto market may have a relative advantage in 2022," opined McGlone in December 2021.
Tony Fenner-Leitão (Cambrian Asset Management)
For Fenner-Leitão, president of Cambrian Asset Management, a digital asset investment firm, 2022 will most likely focus on regulation, which could bring more clarity and transparency to the cryptocurrency 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 helpful and gives people confidence that they at least understand and have a direct view of the stability of these companies," Fenner-Leitão points out.
Hong Fang (Okcoin)
As CEO of Okcoin, a company dedicated to the exchange of cryptocurrencies, Fang once opined that bitcoin was unlikely to reach $100,000 by the end of the year, as expected in certain scenarios. And given that cryptocurrencies are an emotionally charged market, in Fang's eyes, it is difficult to see where the price of bitcoin could go in 2022.
"I still believe 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 the decoupling of different crypto assets from bitcoin because investors will start to see different underlying value propositions for different endeavors," explains Fang.
Kyle Samani (Multicoin Capital)
Samani is a managing partner of Multicoin Capital, a well-known crypto-asset investment firm. His crypto hedge fund is betting on Solana (SOL), helium (HNT), and the graph (GRT) to lead the pack of tokens backed by strong technology fundamentals.
As for bitcoin, Samani is optimistic that we have not yet reached peak prices 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 that now all these assets do different things, and they have different functions, different utility," Samani clarifies.
Kevin Kelly (Benchmark Investments)
For the CEO of financial firm Benchmark Investments, ethereum will take the top spot from bitcoin later this year. "We have absolutely no doubt that a reversal can happen this year," the expert assured Market Watch. For this to happen, ETH's capitalization, which stands at $390 billion, would have to surpass BTC's $815,000.
The feat is not far-fetched for Kelly, as he explains, the momentum that decentralized finance is gaining, coupled with blockchain, non-fungible tokens, or NFT, allows for forecasting such growth for Ether. "Over the next three to five years, we believe the growth of blockchain applications will be unprecedented and ETH will have a role to play in this area," he said.
"We believe that Ether can surpass the total market value of Bitcoin this year," he asserted. In one year ETH increased its price five times (up 400%) and, while in December 2020 it was trading at $636, now its price is $3,279. The price of bitcoin also rose, but much more slowly (by 60%). In December 2020 it cost $26,000 and now it is trading at $42,000.
Brian Mosoff (Ether Capital)
Mosoff, CEO of Ether Capital, a company specializing in technology infrastructure, tells of the importance that the Solana cryptocurrency may have, which should be watched very closely. "There is a large community around this cryptocurrency. There is an argument that they use a different programming language, Rust, which may have more flexibility or more support for developers who are not familiar with Solidity, the ethereum language. So Solidity, to me, is sort of a precursor to this group of ethereum competitors," Mosoff explains.
Armando Aguilar (Fundstrat Global Advisors)
Aguilar is the vice president of digital-asset strategy at research firm Fundstrat Global Advisors. Based on his experience, Aguilar expected bitcoin to reach $70,000, well below the $100,000 predicted by many specialists, but far from the $36,000 that the BTC price reached in recent days. However, Aguilar is confident and believes that bitcoin will reach 100,000 by the first half of 2022, as concerns about institutional adoption and inflation persist.
Meanwhile, he believes ethereum will surpass $9,000 driven by continued growth in decentralized finance, NFTs, and all metaverse-related activities. For his part, Tom Lee, president of Fundstrat Global Advisors, said in an article.published in Bloomberg that bitcoin will reach $100,000 and that, if things go well, it may even reach $168,000.
The only certain thing is that predictions always have a 50% chance of being right and a 50% chance of being wrong. Although over time trends are established that help to forecast the possible future prices of cryptocurrencies, markets are highly variable environments that at any time either go up or collapse abruptly.
For now, we will have to wait and see what happens with bitcoin in 2022. And you, what do you think will be the price that bitcoin will reach this year? Leave us your opinion in the comments box.
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