Bitcoin to the moon! New ATH for Bitcoin! Bitcoin to break the $100,000 mark! These were the catchphrases picking investors’ interest to divert funds to crypto in 2021. In reality, we have seen a flash crash with $1 trillion wiped out overnight. Bitcoin has lost 40% of value, ETH to follow the trail. Even other Alt-coins are experiencing no different fate. The question every investor wants to know– why such a dump after all hyped claims?
Why is the Market Down in the beginning of 2022?
The market has fallen to new lows because of the following reasons:
Does the Market Have To Do with Any Past Trends?
Say it a Deja Vu and I wouldn’t question the claim! Indeed, since the pattern formation replicates that of the past. In 2017 as a result of institutional acceptance, Bitcoin broke all ATH. It was trading at $,7000. In December of 2017, the CME launched BTC futures. As a result, the market exploded to $20,000. Investors went on to book profits causing BTC to dip following the new ATH. During the same time, other ALT coins kept calm. But, they followed in the footsteps of BTC in January of 2018 emulating the same explosion as the market leader.
For example, Ripple peaked almost a month after BTC. Likewise, we see the same formation in 2021. Coinbase IPO pushed prices to the sky. But the Chinese ban put the market in check. On top of this, the holiday season like Christmas and New Year further fueled the profit booking sentiments. All these combined somewhere paints a similar picture of the past. However, one cannot take these signals as concrete events. As the crypto market is unpredictable and volatile. Hence anything can happen at any point in time.
Future Price Prediction of Cryptos 2022
BTC
Bitcoin underwent the best time of adoption and recognition. El Salvador made it as a legal tender. Ukraine wishes to follow in the footsteps of El Salvador. Having said that, it is impossible to actually predict BTC price, but it could breach $70K to $100K by 2022.
Ethereum
With the much-awaited rollout of ETH 2.0 in 2022, Ethereum prices may go well above $6,000 by year-end.
Binance Coin (BNB)
BNB started on a brisk note with 1.4 million transactions per second. With such a huge volume, BNB would power up transactions and banking. Having said that, the token could hit new gains in 2022 with $1000 as the next target by 2022.
Solana
Solana could touch the $300 mark by the end of 2022. By empowering blockchain, NFT’s, DeFi, and Web3.0, could help the DeFi space mature further. At the moment, high transaction fees and low throughput are existing bottlenecks. Solana paves the way to solve these.
