Is Bitcoin Carnival Too Late? Expert: lose $ 10,000 by 2022

To date, the value of Bitcoin has increased by almost 70%, bringing the total value of the entire crypto market to $ 2,000 billion. However, recent regulatory oversight efforts and the low weight rates have led to a lack of confidence in Bitcoin. Experts warn that Bitcoin could fall in financial markets.

Is Bitcoin Going To Fall?

Some experts have warned that Bitcoin will drop in the coming months.

In November, the value of Bitcoin reached almost $ 69,000. Currently, Bitcoin is below $ 50,000, which is almost 30% below its highest value. Wall Street has defined the bear market as being down 20% or more from its recent high. However, it should be noted that Bitcoin is not well known for its exchange rate.

Carol Alexander, a professor of finance at the University of Sussex, predicts that Bitcoin will drop to $ 10,000 by 2022, wiping out almost all of the profit from the previous year and a half.Alexander says:

"If I were a Bitcoin trader, I would decide to shut down Bitcoin as soon as possible because the value of Bitcoin could drop next year."

The reason it doesn't have Bitcoin is because Bitcoin is "worthless" and not as much of an investment as it is "toys".

Alexander warned that after the price rises, Bitcoin could go down as much as in the past.In 2018, Bitcoin fell to almost $ 3,000 and rose to almost $ 20,000 in the last few months. Bitcoin supporters often say that something different this time around the trading company is increasingly entering the market.

Todd Lowenstein, chief justice of private equity firm Union Bank, said the Bitcoin price comparison looked like many asset bubbles in history, and people have always thought that "this time it was 'is different ".

One of the main reasons for investing in Bitcoin is that it can be used as a hedge against financial backing from government donors. Lowenstein said.The Fed's hawkish stance could affect the strength of the asset class and Bitcoin..

However, not everyone thinks the Bitcoin Carnival will end in 2022. Yuya Hasegawa, cryptocurrency market analyst at Japanese bitcoin exchange Bitbank, said:

"The biggest risk, the Fed's quantitative easing, has already landed and could impact inflation."

Bitcoin ETF in first place

A major improvement that cryptocurrency traders are eagerly awaiting is that the United States will approve its first Bitcoin exchange-traded fund (ETF) in 2022.

Although the United States Securities and Exchange Commission (SEC) approved the release of the ProShares Bitcoin Strategy ETF this year, the stock market tracks Bitcoin futures, not the cryptocurrency itself.

Vijay Ayyar, vice president of business development and global expansion of the Luno cryptocurrency exchange, said:

“Bitcoin futures ETFs issued this year are considered bad for a trader because they typically have very high commodity prices, around 5-10%. There is no evidence that spot Bitcoin ETFs will be approved in 2022. It is growing. Quite tall and mature. "

Asset manager Grayscale Investments has requested to convert its Bitcoin investment into an ETF. There are many more Bitcoin ETFs still waiting to be approved.

Switch to DeFi

As the growth of the crypto industry has led to a downturn in the shared Bitcoin market, other digital currencies such as Ethereum have played an increasingly important role. Analysts predict this will continue into the next year as investors shift their focus to smaller and smaller cryptocurrencies and write big gains.

Alexander of the University of Sussex has included Ethereum, Solana, Polkadot, and Cardano on his list of cryptocurrencies to see in 2022.He says:

“As an investor begins to realize the dangers of the Bitcoin market, especially in an unregulated environment, they will look to other advantages in the blockchain space where it plays a significant role in financial markets. Bitcoin represents less. half of the total market value of smart contracts (eg Ethereum and Solana).

Bryan Gross, network manager for crypto platform ICHI, said decentralized finance (DeFi) and decentralized autonomous organizations (DAOs) could be "the biggest crypto companies." DeFi's mission is to redesign existing financial products without intermediaries, and DAOs are a new kind of online community.

According to the data, the total DeFi contract close this year exceeded US $ 200 billion for the first time, and experts estimate that demand will increase further in 2022.

However, most analystsRegulation will have a major impact on the crypto industry in 2022. Regulators will start looking at DeFi titles and sites in addition to Bitcoin and Ethereum.