Thursday, September 21

Bitcoin Market Predictions for the cryptocurrency industry in 2022 | Bitcoin Portal

Brazilian cryptocurrency brokerage Bitcoin Market published this week perspectives for the year 2022 and recapitulated the biggest events in the cryptocurrency and blockchain industry of 2021.

The adhesion of big institutions to bitcoin, the meme currencies, the world of NFTs and the Metaverse, which raised even more the proposal of decentralization that started about 13 years ago with Satoshi Nakamoto, are highlights of the report.

2022 bets

Bitcoin Market 2022 bets are centered on the Metaverse, with an emphasis on The Sandbox and Decentraland platforms, the NFTs, blockchain and DeFi-based games, and the Bitcoin and Ethereum markets. “The two largest cryptocurrencies should continue with good prospects for 2022”, says an excerpt of the document.

About Bitcoin, the company highlighted the adoption as a store of value, protection against inflation, as well as a means of payment using secondary layers, such as the Lightning Network, for example.

Regarding Ether, “the valuation thesis is of an asset that leads evolution and transformation”, says the report, that is, the majority of NFTs and smart contracts occur primarily in this network and “therefore, we should expect more news to emerge” .

Bitcoin price forecast at the end of 2022

Bitcoin price forecast for this month of December, the brokerage Mercado Bitcoin scraped and its guess in 2020 and the guess was 10% below, in other words, R$ 250 thousand compared to the current R$ 270 thousand.

For December 2022, the company considered several ongoing discussions, such as CBDCs and a possible adoption of large bitcoin retailers, such as Amazon, for example, which would likely raise the price of cryptocurrency.

“With this information in mind, it is possible to make a forecast for the 2022 closing of Bitcoin close to R$ 525 thousand, an increase of 90% compared to the current R$ 276,000 on December 22nd. For Ethereum, there is the challenge of abandoning traditional mining and delivering a solution with greater capacity, ETH 2.0. Therefore, its potential is greater considering the risk of delays in execution, going from the current BRL 22,500 to BRL 54,000, an increase of 140%”, concluded the report.

Retrospective 2021

Regarding 2021, the Bitcoin Market highlighted the price performances of Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), XRP, Polkadot (DOT), which had an increase of up to 700%, as in the case of the ADA, with emphasis on Bitcoin which, in addition to having increased by 64% in the period, was consolidated with the launch of ETFs and adoption as the official currency by El Salvador.

He also highlighted the search for cryptocurrencies as protection against inflation, accelerated in many countries due to the coronavirus pandemic scenario, highlighting a high correlation in price trends between Bitcoin and US government bonds.

“When investors look for security in these debt securities, considered the lowest risk assets on the market, the return rates fall. In contrast, when there is distrust of the US’s ability to keep the economy warm, the market sells those bonds and causes rates to rise. These movements are usually accompanied by peaks in the price of Bitcoin”, explained the company.

Chronologically, the entity’s report highlighted the 20 biggest events that helped change the cryptoeconomic landscape in 2021, such as Tesla’s billion-dollar purchase of bitcoin, announced in January by CEO Elon Musk. In this engagement, Square, owned by Twitter founder Jack Dorsey, and Microstrategy, led by entrepreneur Michael Saylor, also came.

The Chinese government’s crackdown on cryptocurrency mining was also highlighted, as was the advance in discussions on the regulation of the new financial sector around the world, with the eyes more focused on the largest global economy, the US.

Cryptocurrencies meme, NFTs and Metaverses

The cryptocurrency meme wave, the report noted, started when Dogecoin (DOGE) was embraced by a group on the social network Reddit called WallStreetBits that raised DOGE’s market value from millions to billions in a short time. left active in the presence of the top 10 of the global crypto market. Another highlight was Shiba Inu (SHIB), who hitched a ride on DOGE.

Other phenomena, the report highlights, were the rise of NFTs that merged with art and the metaverse, opening a new economy within the crypto world. Digital artist Beeple, for example, sold a record $69 million of an NFT at an auction in London.

After that came Axie Infinity, play-to-earn game, and several platforms focused on the modality based on the metaverse. Facebook, being broad, even changed its name — Meta.

Blockchain networks Solana and Avalanche, both focused on scalability, increasing processing capacity, also began to receive millionaire contributions.

Trends that were confirmed in 2021

About the trends that were confirmed this year, the Bitcoin Market highlighted the digital scarcity, with the thesis of “digital gold” of Bitcoin; decentralized finance (DeFi), which marked the exponential growth of financial services.

“The decentralization of everything has failed (for now) the promise of Web3.0, where users become ‘owners’ of their data, and applications become independent of the big companies with their servers, satellites, and cables”, highlights the report.

Click here and check out the full report.