Investing.com - The end of the year is an opportunity to make plans for 2022. It also does not bypass the cryptocurrency market.
It is worth recalling that since the beginning of 2021, the most popular cryptocurrency has grown by approximately 70%. This is the result of the entry of the Coinbase (NASDAQ: ) company on the stock exchange. In addition, there has been a growing interest in cryptocurrencies from investment banks like Goldman Sachs (NYSE: ). The launch of ETFs based on cryptocurrency contracts was also important. El Salvador has declared Bitcoin legal tender.
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However, there were also factors that held back Bitcoins growth. For example, in mid-September, the head of the US commission regulating the securities market, Gary Gensler, emphasized that work is underway to regulate the unstable cryptocurrency market. Earlier, China even banned this type of asset on its territory.
The opinions of experts cited by CNBC are ambiguous. According to Todd Lowenstein, a strategist from Union Bank, the rise in cryptocurrency prices shows the characteristics of a speculative bubble. Another problem is the expectations of the hawkish policy of the Federal Reserve. This, in turn, may lead to a retreat from Bitcoins seen by some as a hedge against inflation.
Bitbank's Yuya Hasegawa says it's not a problem, however. After all, the possibility of a hawkish Fed return is already included. Therefore, it should not lead to further declines.
On the other hand, Carol Alexander, a professor of finance at Sussex University in an interview with CNBC said that the Bitcoin rate could drop to $ 10,000. In her opinion, cryptocurrency has no intrinsic value. On the other hand, in her opinion, in 2022, cryptocurrencies offering practical interest in applications, for example in decentralized finance (Defi), may gain. In her opinion, in a year's time, the total capitalization of alterations related to the field of smart contracts, such as Ethereum or Solana,, will turn out to be at least 2 times higher than the capitalization of Bitcoin at the end of 2022.
In turn, professor and entrepreneur Sean Stein Smith in Forbes says that in 2022 Bitcoin will reach the $ 100,000 target. In his opinion, this is quite a conservative assumption. It will be supported by - as the author claims - the increase in popularity of crypto assets and the fact that inflation still remains a significant problem. Sean Stein Smith also predicts an increase in the importance of cryptocurrency payments after its adoption by leading payment organizations such as Mastercard, Visa, and Paypal.
The impact of stablecoins will also prove to be significant. They can attract the attention of people who are not experts or fans of cryptocurrencies and are reluctant to high volatility. The selection of forecasts was also published by Analytics Insight. He points to the opinion of several specialists that the Ethereum price will reach $ 6,000 by the end of 2022. As they emphasize, this is related to the continuation of the transition to the ETH2.0 version.
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