2021 is out and 2022 is in. We are living through tumultuous times lately, to say the least, and we could do with a bit of good. Let’s see.
First of all, I have to admit defeat. In my book, ´Bitcoin For Mere Mortals´ I predicted BTC price at the end of 2021 at $100,000 and ETH at $10,000.
It hasn’t happened…yet.
Predicting the future is difficult enough, but getting the timing right is even harder. I’m confident we’ll reach those targets soon and maybe more. It’s not a matter of if, it’s a matter of when.
So here we go, these are my predictions for 2022 based on my analysis. I’ll review them by the end of the year to see how many I got right.
My price target for Bitcoin is $200,000. Yes, it’s a bit aggressive but by looking at supply and demand, it’s within reach.
Besides, we will see more adoption from countries, especially in LATAM and Africa. These are the most likely ones:
Paraguay, Mexico, Panama, Honduras, Ecuador, Argentina, Venezuela, Cuba, Brazil, Ukraine, Malta, and some African countries.
In 2022, we will finally see at least one spot Bitcoin ETF approved in the USA, perhaps another for ETH, and many more around the world. This will pump the price even higher.
In 2021 Canada has been the leader in BTC ETFs and the money is flowing from the US to their neighbors. They can’t afford to stay out any longer.
With Ethereum, I’m a bit more cautious and my prediction is just $10,000. ETH 2.0 is coming and although the potential is huge, so is the risk.
If everything goes well with the transition, we could easily see $20,000 but let’s see how it goes.
The first half of the year will most likely be bullish but then we might enter a bear market.
In this scenario, investors tend to sell their more risky assets and buy safer ones. I expect a migration of money from the top 500 to the top 10. So if you have made money with some obscure coins, this is the time to sell and park your money somewhere else.
My top 8 Altcoins for high potential and low risk are the following:
Matic, Solana, Luna, Polkadot, Avalanche, Algorand, Fantom, Chainlink
95% of the rest will fade away into oblivion.
5. Bull Market
I can see two scenarios here:
- if BTC goes to $200K, a distinct bear market with important dips will follow
- if BTC only reaches $100K, we’ll skip the bear market for the most part and enter a supercycle
6. Increased adoption
Crypto users will reach 1 billion this coming year, which is a 3x increase from here.
The metaverse has a lot of potential but is not ready to explode yet, it will take at least 10 years to be a good investment.
Besides, no one can predict who will be the winner. It might be Decentraland, Sandbox, Apple, or some other project that is not even in the cards yet.
Decentralized Finance, on the other hand, is ready for mainstream adoption. Visa and Mastercard are charging 3.5% to vendors for every transaction and companies like Amazon aren’t happy about this.
Still, unclear who is going to be the winner here, it could be Bitcoin with the lightning network, Ethereum in association with Matic, Solana, Luna, Polkadot, or some other. But something big is cooking in this area and I believe Jack Dorsey with his Block company will disrupt this market.
Bitcoin and crypto are here to stay. 2022 will be a year for the consolidation of good projects, the growth of institutional investors, and the development of new financial technologies.
Fiat is dead and you don’t want to be in that boat, the risk is too high.
Get off zero Bitcoin now or you will be ending 2022 with the regret of not having grabbed this opportunity to achieve financial independence.
The best opportunity for wealth redistribution is here, you could pass and stay put, but then you will have to do a lot of explaining to your grandchildren when they ask you about it.
Bitcoin is not risky, what’s risky is not investing in your future.
Not financial advice.