By Shelly Melancon (Switzerland)
Pundits remain firm in their belief that Bitcoin is heading to $100,000 next year. They say that the crypto markets next year will be shaped by how economical the network is and its ability to adapt. 2021 was a good year for cryptocurrencies. It saw tokens receive a lot of mainstream adoption and interest, with Bitcoin even becoming legal tender in El Salvador.
Bitcoin to $100,000 Is Still a Realistic Prospect
The $100,000 price point was thought to be possible for Bitcoin this year. However, it now looks improbable. That said, experts now see the milestone being achieved before the second fiscal quarter of 2022. We will take a look at some predictions below.
Pundits have become wary about airing their views on future price targets for Bitcoin. Famed institutional investor Plan B had predicted the primary crypto to be near the $100,000 price point in November, but that didn’t happen. It is important to note that the analyst had been right for 3 months before that. Market participants, as a result, have started interrogating the investor’s strategy more.
However, a certain Twitter user and market analyst, Decodejar expressed his opinion that the price of Bitcoin will get to the $100k mark in the coming months. He went on to add that the token could go over $200k by year’s end. The analyst who used Elliot wave and Fibonacci for confluence saw the price nearing $200k in the summer. Decodejar closed with a disclaimer implying that this was a guide and may not exactly predict the future, but is confident in the price closing in on $200k.
Crypto Bans Are Unlikely
At the moment, the crypto ecosystem is facing increased scrutiny by lawmakers, regulators, and international economic bodies. Regulations are undoubtedly being developed around the world.However, there are decreasing fears of a blanket ban across leading economies.
David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, an asset management firm, expressed a similar sentiment. He stated that he believed in the staying power of the tokens, adding that they would not be banned by governments. However, the executive believes that the government will hope to get revenue from them through taxes and regulate them similarly to central bank-issued currencies.
Lifchitz believes that over time, organizations and businesses will have to adapt to the changes to maintain their relevance and competitive edge. Financial intermediaries, he believes, may find themselves in troubled waters as a result due to the rapid interest and growth of the DeFi space. The executive didn’t seem to express the same confidence in NFTs and the metaverse, though.
Mainstream Adoption Will Continue
It is expected by analysts that the mainstream adoption of cryptocurrency and blockchain technology will continue in the coming years. A survey this year showed that over half of the institutions not already invested in the market had plans to gain exposure next year. With regulations coming, most of the firms that have stayed on the sidelines will have more confidence to jump in.
The Executive Director of crypto and digital asset hedge fund ARK36, Loukas Lagoudis, said he expects the space to continue to grow next year, fueled by institutional and banking integration. Lagoudis says he sees the market continuing to go up as a result in 2022. He added that many corporate investors were beginning to prefer Bitcoin to gold as an inflationary hedge.
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