Technology and Internet

What news brings the world of bitcoins in 2022

The early days of 2022 may not have been very kind to Bitcoin, but if you’ve been in this space as long as yours truly, you’ll know it’s normal in this volatile market, so if you’re looking invest in bitcoin in 2022, you may be interested to know these predictions from different market analysts, starting with those of Mike McGlone, an analyst at Bloomberg Intelligence, who sees the Bitcoin and Ethereum Headed for $100,000 and $5,000 Value, respectively in 2022.

While there are those who predict the dreaded Crypto Crash, experts such as Ryan Firth, financial planner with Mercer Street Financial, affirm that “everything is part of the game” and point out the relevance that cryptocurrencies have gained in the last year; and to show a button, several major retailers began accept bitcoins as a form of payment in 2021.

Some athletes and politicians began to receive part of their salary in cryptocurrencies, while Wall Street Created Exchange Traded Funds Around Cryptocurrency Futures. This is not to mention the historical case of El Salvador, which accepts Bitcoin as a legal tender that coexists with the US dollar.

Bitcoins in 2022: First exchange-traded fund in the United States

A big development that crypto investors should pay attention to in 2022 is the approval of the first bitcoin exchange-traded fund in the United States.

Although the Securities and Exchange Commission has already given the green light to launch the ETF of the proshares bitcoin strategy this year, the product tracks Bitcoin futures contracts rather than giving investors direct exposure to the cryptocurrency itself. So it might be too risky for novice investors, but good for the big picture and traditional investors who haven’t made the jump into Bitcoin or other cryptocurrencies yet.

Additionally, blockchain analytics firm Arcane Research predicted in a research note that more Bitcoin ETFs will appear in the near future, as well as more cryptocurrency companies going public in 2022, and several of them will have valuations of more than 5 billion dollars.

On the other hand, according to estimates of Bloomberg Intelligence, the possibility that the United States Federal Reserve will raise rates in 2022 could support a “win-win scenario” for Bitcoins in 2022 against the stock market, with the crypto-asset likely to gain an edge against stocks this year.

It is also worth mentioning that it is predicted that 2022 it will be a strong year on the regulatory front. Depending on how events unfold this could either favor the adoption of cryptocurrencies or undermine their position. However, the main focus is expected to be so-called stablecoins, such as Thether (USDT).

Other countries could adopt Bitcoins in 2022

The president of El Salvador Nayib Bukele, who strongly advocates Bitcoin, predicts that, in addition to reaching a price of 100,000 dollars, the cryptocurrency will be adopted as a legal tender by at least 2 other countries more this year.

2022 predictions on #bitcoin:

•Will reach $100k
•2 more countries will adopt it as legal tender
•Will become a major electoral issue in US elections this year
•Bitcoin City will commence construction
•Volcano bonds will be oversubscribed
•Huge surprise at @TheBitcoinConf

– Nayib Bukele 🇸🇻 (@nayibbukele) January 2, 2022

Similarly, the Salvadoran president reiterated that the construction of Bitcoin City begins this year.

Hashrate will be even more geographically distributed in 2022

As everyone will know, China has banned Bitcoin mining operations in 2021, which will drive a massive migration to other regions. After the ban, the United States remained the main player in terms of Hashrate (35%), but as miners establish operations in new places, such as Latin America, the hashrate is projected to spread further in 2022.

Bitcoin will outperform the S&P 500 in 2022

With Bitcoin outperforming both the stock market and gold in 2021 for the third year in a row, experts are confident the trend will continue into 2022, so it will outperform the S&P 500 index again in 2022.

With that said, it may be a tough time for Bitcoin, but it looks like the quintessential cryptocurrency and stablecoin will maintain dominance through 2022.

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