At 9:52 am in Hong Kong, bitcoin was trading at around $46,100 with a gain of 0.2%. Here some market experts have given their opinion as to what could be the trend of cryptocurrencies in this new year i.e. 2022 and how and how the policies of the Federal Reserve, America’s central banking system in particular, can affect the digital currency.
According to a Bloomberg report, Antoine Tranchev, managing partner of crypto lender Nexo, said in an email, “Bitcoin and cryptocurrencies will be most impacted by central bank policy in 2022. Loans will be cheaper because it has an impact on crypto,” he said. Will have a big impact. The Fed does not have the capacity to take the risk of a 10-20% fall in the stock market. Along with this, it can also have a bad effect on the bond market.
Bitcoin may reach $100,000
Tranchev sees 2022 as a very good year for bitcoin and so far he estimates that bitcoin will reach $100,000 by the end of June. He continued, “What I’m really excited about in 2022 is the metaverse.”
He added, “There is a lot of potential in the metaverse. Hopefully next year it will be one of the broader themes. Metaverse, infrastructure building and then NFTs, which will be part of the economy there.”
‘Fantasy excitement will continue in the crypto space’
“While I expect the hypothetical enthusiasm in the crypto space to continue. It looks good from the outside, but it will face a more challenging environment in 2022,” Jeffrey Haley, senior market analyst at Oanda Asia Pacific, said in an email.
He further added, “The first reason for this would be the introduction of a simple interest rate by the Federal Reserve, but later other major central banks may also take similar steps. This will give a credence to the claims of adopting crypto as an alternative to fiat money. There will be a blow.”
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“Too much trust in the crypto space risks more regulation, frankly there’s a new coin coming out every week, which is a big deal in itself. A lot of it is driven by speculation and not the blockchain,” Haley said.
Not only that, he also said, “I believe that cryptocurrencies are the biggest case of financial-market group-idea stupidity in history.”
‘Race to be the App Store for crypto’
And Philip Gradwell, Chief Economist of Chainalysis, said in an email, “The race for cryptocurrency to become an app store is on.” He continued, “One of the key lessons of Web 2.0 was that consumers love platforms and I don’t think that’s going to change in Web 3.0. There is currently no crypto platform, that solves customer related problems and Which has all the suppliers. I predict that in 2022, many companies will race to build this platform, with Coinbase at the forefront, as it integrates DeFi and NFTs.”
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