Okay folks so as we head into 2022 one of the most closely watched and anticipated sectors is going to be the cryptocurrency market with crypto assets having record runs in 2020 and 2021 some people are expecting 2022 to be the year of reckoning and others are expecting it to be the year of higher and higher highs and it's funny if you look at.
Something like a bitcoin or an ethereum back during the start of the pandemic you saw bitcoin get cut from just under 10k to just over 5k and then later on it went into the 60s and then with ethereum you of course also had a severe similar cut from 272 to 121 and then well the rest is history and despite some huge volatility throughout this year overall.
They've both held their upper end ranges very very well but the crypto market seldomly goes multiple quarters without having massive moves into new highs or massive moves into new lows and so in this violent video i want to go with you step by step line by line through the biggest analyst opinions on bitcoin and the cryptocurrency market for 2022 as.
Well as some other predictions that you're going to want to know about and the only thing that i ask in return for all of this is that you hit that ravishing like button and also don't forget to subscribe either also our end of the year sale on ziptraderu is on putting in coupon code goodbye 2021 before checkout will get you a sizable.
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The ceo of kraken which is of course a cryptocurrency exchange and bank said he expects bitcoin to end the year in the six-figure territory he thinks that growing mainstream awareness and increasing regulatory clarity could usher in a better year for the largest cryptocurrencies in 2022 your bitcoin your ethereum your cardano he doesn't.
Think a massive crypto winter is around the corner he says you look at the 10-year chart and that tells you everything you need to know he told insider he thinks that nfts will power the 2022 market similar to how it powered the 2021 market only to a larger extent obviously nfts are another point that kind of reiterates why he believes.
The biggest cryptocurrencies are going to do very very well next year because obviously nfts are overwhelmingly hosted on the ethereum network providing more and more demand for the network and providing a lot more actual value fundamentally for ethereum he also says if you want to know the direction of cryptocurrency and bitcoin why don't you.
Go ahead and look at the tenure chart if you see anything but up your eyes are broken that's at least my characterization of how he would say it obviously a ceo of a crypto exchange is going to be very very bullish on crypto so note the source but here we go we got a bear so carol alexander who is a.
Professor of finance at sussex university told cnbc that she expects bitcoin to tank as low as 10 000 in 2022 virtually wiping out all of its gains in the past year and a half her bearish call hinges on the notion that bitcoin has quote no fundamental value and serves as more of a toy than an investment but what's very interesting.
About this argument is this is something you'll often see from bitcoin haters they'll say oh it has no fundamental value oh it's a toy for children oh my dog chews on it as a dog toy but then they'll say something like oh but it'll take as low as ten thousand wait a second backup so this has no value but it's going to hold it ten thousand it's.
Like wait if it has no fundamental value how are you making a four based on what it could be just as easily valued at a thousand or a penny if you really believe that something has absolutely no fundamental value that it's worth as much as air well how can there be any sort of floor during a crash nonetheless the floor that is incredibly high.
Compared to where this was trading at just like five or six years ago are they arguing that bitcoin is worth more now than it was in 2016 when it was trading at 398 dollars 398 dollars is a lot less than 10 000. if bitcoin had no fundamental value back then and it still has no fundamental value today why is it worth 10 000 instead of 398. or are they.
Subconsciously admitting that the real value and utility behind a crypto asset is the institutional backing how many are holding it on their balance sheets how many people are offering it in terms of crypto services how many people believe in the long-term viability of it the international trust in the crypto asset those things have grown.
Substantially since 2016 and crypto assets with much better technology come out all the time but they don't have the same value as bitcoin because guess what the reputation and all of these fundamental factors of who's holding it what they're doing with it the long-term trust in it as one of the first movers the fundamentals behind any currency is.
The crowd's trust in said currency it's true with regular traditional currencies fiat and it's the same thing with the cryptocurrency market with fiat obviously you have the government backing it but we know that doesn't always work so well in a lot of countries and then with the cryptocurrency market obviously that.
Authority is decentralized across the blockchain but charlie they're just saying it has a floor because they know some people aren't going to sell no matter what happens well why aren't those people going to sell though is it because they believe in the long-term viability of bitcoin as a store value or a payment solution that's the case then.
They're literally buying it based on a fundamental value that they see fulfilling itself in the next 10 to 15 to 20 years okay next you have armando aguilor who is the vice president of digital asset strategy at funstrat global advisors he thinks that the fed's decision to double its pace of tapering and potentially hike rates three times.
In 2022 combined with the variant supply chain issues and midterms will induce choppiness in the market those are my favorite predictions it's gonna be choppy and then it's like well yeah you're always right with the cryptocurrency market if you say it's going to be choppy however there's definitely some wisdom and being.
Prepared for both emotionally he however does take a strong approach to where it's going to go he says he expects bitcoin to reach six figures by first half of 2022 as institutional adoption and inflation concerns persist he is specifically bullish on ethereum which he thinks will go to 9000 because of the growth of nfts and demand for d phi he.
Says that regulation slowed down d5 investments in the last half of the year but continued adoption and clear legislation can drive growth next year obviously some notable companies that were under sec scrutiny this year were block fi and coinbase blockfi had the problem with their high yield savings accounts and coinbase had their problem.
With the lending feature that they're trying to introduce the sec has been using its oversight ability to go and basically halt a lot of the progress in terms of developing in the crypto space and it's unfortunate but he's saying that hey you're going to see lots of that in 2022. i don't know why he thinks you're going to see less of that in 2022.
It seems to me that as more and more people use cryptocurrency and crypto brokers and all the different features and sweet products around that space you're just going to see more and more incentive for the sec to come in and figure out how to regulate it as much as they can next you have james malcolm who is the head of fx strategy at ubs he.
Thinks that stable coin providers crypto wallets defy exchanges and so forth will be regulated more like traditional financial market participants there's a lot of people that are wondering hey wait a second you have these crypto exchange platforms like coinbase that are sitting at a market cap of like 60 billion dollars this is the size of a.
Small to medium-sized bank and they have very very little if any regulation he thinks that this regulation is going to be very very unappealing to a lot of players in the space but that regulation clarity and ultimate resolutions will be positive and further pave the way for widespread adoption there's a lot of people that are scared of regulation but.
Once you actually get the regulation and we get clear guidelines and it's not insane then all of a sudden you set the stage for people more trusting in the asset class people less worried about regulatory blowbacks happening any day and you have a lot more positivity at least this is the argument that i'm reading here okay vladimir putin who is.
The russian president a part-time crypto analyst and also some believe is a previous member of the crypto kgb which is like the regular kgb but the crypto version they exist on the blockchain a lot of people don't realize that the cold war was this close to being fought on the blockchain but anyways he said it is not backed by anything and the.
Volatility is colossal so the risks are very high he seems very very bearish heading into 2022 which statistically isn't surprising because russia has the highest population of bears so statistically it makes sense that putin would be a bear it also has called for greater monitoring and regulation of cryptocurrencies but it's worth.
Mentioning that very little regulation on digital assets as a whole exists in russia so far today okay mike mcglone who is a senior commodity strategist at bloomberg intelligence thinks that cryptocurrencies will dominate in 2022 and will outperform more traditional investments he thinks that as cryptos grow in popularity that traditional.
Asset managers will be forced to participate this is what we've started seeing this year a lot of institutional investors were going and buying huge swarths of bitcoin and to some extent ethereum and some of the others and what happened while they had this cascading effect where when other.
Institutional players saw their institutional competitors buying it they're like okay well we gotta buy it too and then all of a sudden you have these massive massive returns and everybody else is like hey we want some of this and you create that self-fulfilling prophecy and then if you're a big fund manager who hates.
Crypto doesn't believe in it at all and your clients go and see all of these huge funds making all these massive massive returns in the crypto space what are they going to do they're going to call you up and say why the hell am i not in this crypto thing so it becomes imperative for a lot of these fund managers if they want to keep their.
Clients to at least allocate a small portion into that cryptocurrency market and the more the cryptocurrency market stays relevant the more people are going to be forced to at least allocate a small portion into it which again creates that self-fulfilling prophecy now i think you're still at the very very early stages of this so you're not.
Seeing a lot of that proof of concept yet but you're seen enough where it's like okay we can see where the trend is heading okay diego monica is the president of anchorage digital which is the first federally charted crypto bank and he makes an argument from a rising utility standpoint he says it's no longer just speculative investing in.
Bitcoin or ethereum we're talking about nfts defy remittances capital preservation and many other verticals he's saying aka the actual utility is increasing he thinks banks and fintech will continue to add support for crypto services across the board as well in 2022 so again this goes back to that whole argument of hey crypto has no.
Fundamental value but what is fundamental value if not utility he also says that he thinks that banks and fintechs will continue to add support for crypto services across the board if that happens again in 2022 you'd expect more and more crypto assets to be on the balance sheets of institutions and create a lot more confidence in the.
Space now in terms of other risks and predictions heading into 2022 that aren't analyst specific you have some folks kind of building on our previous point some folks are worried that the actual utility of blockchain is far far less than the current market values suggest and thus in a bear market assets can fall dramatically now obviously.
There's truth to that the actual utility is far far underdeveloped most assets are so early stage they're not going to see a lot of the parts of their utility for many years down the road and some of them are just going to completely blow up and never be seen again but don't forget that part of the utility is the ability to store capital with big.
Institutions putting billions of dollars in cryptocurrency and more institutions adding the ability to well transact with cryptocurrency or other crypto type services all of a sudden the actual utility goes up over time it's serving the purpose of holding preserving and hopefully growing capital over the long run next and this is one that i really.
Agree with is the threat that excess leverage poses the insane amount of leverage in the bitcoin market creates the opportunity for huge downside risk if certain levels of support are broken the first round of euphoria earlier this year pre-summer came on the backs of massive massive leverage in the cryptocurrency market and then what.
Happened while you got this massive sell-off and it triggered a lot of margin calls and de-leveraging which just totally blew so many people out and then you saw a rebound attempt post-summer and into the fall and you haven't seen as much leverage at least that we can tell in the data sets but this is still one of the most heavily.
Leveraged markets in the world that creates an efficiency where even a small negative catalyst could create a cascading storm of marking calls which then creates a situation that bitcoin and the surrounding market have to take a while to recover from so that's certainly a risk and that's a threat that's present in 2022. the other issue.
Often raised is that the bitcoin broader market has failed to have a parallel correlation with inflationary fears people say that bitcoin is supposed to serve as a hedge against inflation yet during a lot of the periods where the traditional markers of inflationary pressure went up bitcoin didn't this year but i would argue that the counter.
To this argument isn't so much that bitcoin serves as an inflation hedge day to day week by week or month by month but that it does year over year in the long run it serves as an inflation hedge but it's not exactly correlated in the short run people don't think oh inflation immediately rush into bitcoin at least they don't think that on a.
Large enough scale yet i know some people think like that next you have predictions of more el salvador's developing countries that choose to adopt bitcoin are transacting bitcoin as a form of legal tender more and more countries deciding to use cryptocurrency bitcoin or whatever as a legal tender it's going to be very very bullish for.
The proof of concept of the utility of said asset class well why would they do this what's really the benefit here well in el salvador they saw it as a way for salvadorians to reduce the huge fees they paid to send and receive remittances el salvador's gdp is 22 from remittances the money saved on fees can be spent elsewhere in the economy next.
You have a trend of venture capital money flowing into crypto startups if you look at the trend of global venture capital investment since 2012 2021 has not just doubled or tripled 2020 but it's more than four exit venture capitalists are buy and hold aggressive investors who invest in industries that they believe have a lot of potential.
Over the next 10 to 20 years and seeing this means you have a lot of unanimous belief in the future of this market and that should bolster confidence in assets themselves in 2022 if not allow a lot of extension of capital into cryptocurrencies themselves not just cryptocurrency startups you also have some web 3 hype which i don't want to go.
In too much right now it's very very early stage and it's very much buzzy but hey the trend of next-gen internet being more metaverse based being more cryptocurrency blockchain based i believe is definitely a true thing you also have some speculation on the first spot etf likely to come into the picture in 2022 the one that did come into the.
Picture this year wasn't really a true bitcoin etf and left a lot to be desired let's just say that and then lastly one of the biggest predictions that i would say is a lot more of a guarantee than others on the list is that we are going to experience some level of regulatory blowback on this market this year that is just a fact as far as i can see.
Regulatory authorities are going to want to assert their power and when they do it's going to freak out a lot of participants but after that happens on the other end of the spectrum again we should see some more certainty some more clarity and some more positivity because if you just get that negative cloud of regulatory blowback off the horizon and.
You give clarity on what the relationship is between the regulators and the digital asset space then you're going to have a lot more people that feel confident to invest if you look at the rhetoric from gensler and a lot of the other folks in charge it doesn't seem like they're trying to bludgeon the industry they're just trying to find a.
Reasonable way to regulate it now their idea of reasonable and our idea of reasonable may be completely different but at the end of the day we haven't seen a lot of negative rhetoric from them like we've seen in other countries okay folks well that caps off this video if you have any questions feel free to reach out to us below or join us on zip.
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Good one and i'll see you in the next video