In the first half of 2022, the bitcoin rate will update its historical maximum and may even reach $100 thousand, but experts predict it will be under pressure. At the same time, according to them, a significant amount of long-term investments will not allow the coin to fall sharply in price, as it was in 2018.
Ethereum (ETH) Price Prediction
Analysts believe that Ethereum will turn out to be a more attractive investment and, due to the active expansion of projects based on its blockchain, it can rise in price to $6 thousand. However, in 2022, the Central Bank may tighten control over crypto transactions in some countries.
Bitcoin will surpass the $100 thousand mark
The current situation in the crypto market suggests an increase in bitcoin and digital currencies in general. In the first quarter of 2022, the price of the leading coin will be subject to bullish dynamics.
It may renew its historical maximum and exceed $70 thousand. The top analyst of the financial company 8848 Invest, Viktor Pershikov, is sure. According to him, the main reason for the increase will be fiat money inflation, which forces investors to look for alternative investment instruments.
In addition, the number of institutional market participants is increasing, including against the background of the launch by banks and companies of products based on cryptocurrencies, for example, exchange-traded funds.
Now there is a widespread interest of the corporate sector and even states in the placement of reserves in digital assets. This is a decisive factor in the demand and increase in bitcoin price, says Sergey Perekhod, FG Finam.
Analysts Predictions about Bitcoin & ETH
In his opinion, the bullish trend will continue in 2022, and the year may be no less successful for the market than 2021. At the same time, the leading cryptocurrency’s price can exceed the $100 thousand mark, and the cost of Ethereum is $5.8K – $6K.
Viktor Pershikov also expects record values in the cryptocurrency market. However, he predicts the growth of bitcoin at the beginning of the year, the sector as a whole, and Ethereum in the second half of the year.
However, after the leading coin renews its historical maximum, its price may decline and fix in the first six months in the range of $40k – $75k.
This will happen against the backdrop of tightening monetary policy by world central banks, curtailing quantitative easing programs. As a result, investors will withdraw funds from the cryptocurrency market.
At the same time, in the second half of the year, the sector’s capitalization may already reach $4 trillion due to the active expansion of the DeFi, GameFi, NFT, and metaverse segments. Such an increase will lead to a rise in the rate of Ethereum – the most popular platform for decentralized finance and NFT projects.
As a result, the expert said the cost of the second coin in terms of capitalization in 2022 might reach $6 thousand. And this cryptocurrency will be more attractive to investors than Bitcoin.
The leading strategist of the investment company Exante Janis Kivkulis agrees with this forecast. In his opinion, in 2022, the market capitalization could reach 4 trillion, while Ethereum will occupy an increasingly significant position concerning the leading coin.
Its growth will be supported by the growing NFT and DeFi sectors. Therefore, the expert expects that the active expansion of these projects and the integration of cryptocurrencies into companies’ services and payment systems will become the main trends of the coming year.
Bitcoin (BTC) Price Prediction
The bitcoin rate may be under pressure at the beginning of the year, but there will not be a significant recession, as in 2018. Because the market is filled with long-term investors who are in no hurry to sell assets, Janis Kivkulis said.
In 2022, the leading cryptocurrency may strengthen up to $75 thousand and even higher, according to the head of the investment department of ICB Fund Aaron Chomsky.
In addition, there will be an Ethereum update mid-year that will change the transaction processing mechanism and could significantly expand the network. This event can raise the second most popular coin price to $7-8 thousand and the total cryptocurrency market capitalization – to $4 trillion.
Currently, the bitcoin rate is at $ 50.7 thousand, and its dominance index is 40%. When the main cryptocurrency last updated its all-time high, it exceeded 47%.
In early November 2021, the leading coin rose in price to a record $67.5 thousand, and the total crypto market capitalization amounted to $2.9 trillion. Ethereum is currently priced at around $4,000.
Key impact on digital assets
The regulatory policy will have a crucial impact on the digital asset segment. At the end of 2021, the Central Bank saw no future for cryptocurrencies in some countries, such as the Russian market. Besides, it added how banks could restrict the use of such assets.
Therefore, the scenario of a ban on the circulation of cryptocurrencies in the country is quite likely, says the founder of Anderida financial group Alexei Tarapovsky. However, active coverage of this topic in the public space can lead to the opposite effect – increased attention and demand for digital assets.
Artem Deev, head of the analytical department of the international financial company AMarkets, agrees that we should expect stricter regulation of cryptocurrencies.
However, in 2022, they can significantly strengthen control over their purchase and sale in the country. In addition, due to the growth of rates of central banks, risky assets may begin to lose their attractiveness and be under pressure, the expert said.
Additionally, the largest credit institutions and the Bank of Russia did not promptly respond to Izvestia’s request to restrict the use of digital assets.