It’s been a great year for crypto, and many analysts are anticipating 2022 making equally big strides. Most investors believe that bitcoin will break the $100,000 threshold within the first two quarters of next year, and that crypto will continue to expand with increasingly more institutional investors entering the space and traditional financial institutions adopting crypto options, writes CoinTelegraph.
Bitcoin may not have hit the $98,000 prediction by the end of this year, but investors seem to be fairly certain that it’ll finally cross that $100,000 mark by the end of Q2 next year. The failure of the PlanB stock-to-flow model that many analysts had previously relied on for bitcoin price predictions, the same model that had originally predicted high bitcoin prices by year’s end, has caused some uncertainty for analysts when it comes to predicting the volatile cryptocurrency.
One crypto analyst on twitter, decodejar, has created a projection model that sees conservative estimates for bitcoin reaching $190,233 by the middle of next year. The model was created by utilizing Elliot Wave extensions as well as Fibonacci retracement levels; these more aggressive estimates have next year closing with bitcoin at $251,971.
Image source: decodejar’s Twitter
“Projections of future price and time are only a guide, but combining this range with other indicators as we get closer, can allow for a clean exit near the top. I favor the more conservative end of the scale ~$190,000,” the user tweeted.
Despite the recent dip by cryptocurrencies, there remains a general sentiment of bullishness for the space going into next year. A greater number of major institutional investors began adopting various aspects of crypto this year, and major financial institutions have also begun to look into cryptocurrency options. These votes of confidence by such key players will continue to drive growth in 2022, some analysts believe.
The crypto space is expected to continue evolving next year as well, with a greater focus on performance and DApp development over previous trends that were instead focused on store of value and security, explained Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha.
“Basically, the market seems to go for business agility and cost-efficiency rather than blockchain purity, a big change from the past years. This winning relative value trade is likely to continue into next year,” Bonnefous said.
Feeling Bullish on Bitcoin? Invest With GBTC
For investors who are looking for a way to gain exposure to the largest cryptocurrency globally, Grayscale offers the Grayscale Bitcoin Trust (GBTC). The fund is benchmarked to the CoinDesk Bitcoin Price Index and seeks to reflect the value of bitcoin (BTC) held by the trust with the value of the shares.
The fund allows investors to gain exposure to bitcoin through a secure structure. By gaining exposure in the form a security, investors don’t have to buy, store, and safekeep bitcoin (BTC) themselves. Bitcoin via the fund is stored in cold storage with Coinbase as the custodian.
GBTC allows investors to have shares that are titled to their name, auditable, easy for financial and tax advisors to account for, and easy to transfer to beneficiaries. The trust is an SEC-reporting company registered pursuant to Section 12(g) of the Securities Exchange Act of 1934.
The fund has an annual fee of 2.0% and currently has $33 billion in assets under management.
For more news, information, and strategy, visit the Crypto Channel.