Analysts say 2022 will be ‘defined by agility and cost-efficiency instead of ‘blockchain purity’

Analysts predict that in 2022, the crypto industry will tilt toward “cost-efficiency” and “agility,” in addition to BTC reaching $100,000.

In 2021, the whole crypto ecosystem made significant progress toward broad acceptance, and now that the year is nearly over, many are predicting price predictions for 2022.

Many analysts have called for a $100,000 (BTC) price by the end of 2021, and while this is implausible, most investors believe the crucial price level will be reached before the second quarter of 2022.

Here are some of the Bitcoin price forecasts for 2022, according to analysts.

Bitcoin is still on track to surpass $100,000

Since PlanB’s stock-to-flow model wrongly forecast a $98,000 BTC price by the end of November, even though the model had been spot on from August through October, analysts have been more hesitant to make off-the-cuff Bitcoin predictions.

While some traders are disputing the stock-to-flow price model’s veracity, crypto expert and pseudonymous Twitter user ‘DecodeJar’ believe BTC will surpass the $100,000 price mark within the next few months, and that the price may reach $250,000 by the end of 2022.

DecodeJar warned in a tweet that:”While price and time projections are merely a guide, combining this range with additional signs as we approach closer to the peak can allow for a clean exit near the top.” I prefer the lower end of the range, around $190,000.”

Regulations Are Coming in 2022

David Lifchitz, managing partner and chief investment officer of ExoAlpha, provided insight into the future of the whole cryptocurrency ecosystem, stating that “cryptos will still be present in 2022” in the sense that “governments will not outlaw them.”

“They want to control them to keep cryptos on a tight leash compared to fiat currencies and also see them as a source of taxation money to refill their coffers,” Lifchitz said.

Lifchitz projected that as the DeFi ecosystem grows and develops new features, banks and insurance firms would be compelled to adjust their business models to be competitive, while “middle-man enterprises are more at danger as DeFi makes them redundant.”

When it comes to the NFT craze, Lifchitz raised doubts about the sector’s capacity to maintain its breakneck growth rate, and he addressed some of the deeper worries that authorities may have moved ahead.

According to Lifchitz, “It’s become so heated that I can’t help but worry if they’re not being utilised for money laundering…” I get that there is a lot of money floating around owing to central banks that have to find a home, but the NFTs in 2021 remind me of the era in mid-1998 when there’s still opportunity for a parabolic price bubble followed by a crash.”
In terms of the hoopla around the developing Metaverse, Lifchitz noted that while it appears that we are on our way to a future that resembles scenes from the film Ready Player One, “where people seek refuge in a virtual world because their actual reality is dreadful,” our world is still “years away.”

Mass Adoption is likely to continue

Despite indicators of short-term weakness, Loukas Lagoudis, managing director of ARK36, crypto and digital asset hedge fund, “firmly thinks that the overall bullish trend for the crypto market will continue in 2022.”

“The sustained adoption of digital assets by institutional investors and their further integration into legacy financial systems will be the main drivers of growth of the crypto space in the next year,” according to Lagoudis, who believes that institutions will begin to favour “digital assets over gold as a reserve asset” in 2021.

According to Lagoudis, “In addition, because digital assets have persistently outperformed traditional asset classes, we expect investors to consider digital asset allocation as part of their risk management plan, particularly given the rising inflationary economic climate and falling bond rates.”
“The trend appears to be favouring blockchains that focus on performance, dApp development, and are slightly more centralised,” according to Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha.

According to Bonnefous, this is a significant shift from previous patterns, which favoured initiatives “focused on security, store of value, and that are more decentralised, such as BTC and even Ether.”