The year 2021 is relatively successful for digital assets. And, in 2022, investors are expecting it to reach new milestones. Cryptocurrency went into a roller-coaster ride since coins from Bitcoin and Ethereum to Dogecoin witnessed tremendous records and earned tremendous gain in the market. This encourages investors to determine the best prices to buy btc in 2022.
So, move ahead with this article to know what is on the plate for cryptocurrency this year.
It is predicted that Bitcoin is going to outperform or underperform S&P 500. Rising coronavirus cases are still a threat to the global economic industry. But, both Bitcoin and the benchmark index acquired tremendous gain in 2021. During that time, the price of Bitcoin jumped to 66 percent and the S&P 500 rose by 27 percent.
However, according to the research conducted by Arcane, Bitcoin has behaved like a risk-on asset that can further amplify the significant movements in the stock market. So, Bitcoin can outperform if the stock market increases continuously in 2022. But, if the stock market does not rise this year, Bitcoin will likely underperform.
Ehtereum maintained its momentum throughout 2021. And, after the announcement of ETH 2.0, its price value surged significantly. It is predicted that this surge is going to continue in 2022 as well. It will lead to a major jump in its price by up to $6000 by the end of the year. According to Billionaire Investor, Mark Cuban there is much more potential in the growth of Ethereum than Bitcoin.
By this means, it is predicted that Ethereum will continue to outperform in 2022 with the increase in the sales value of NFT. Almost all the tokens run on Ethereum Blockchain. The update from the Berlin update and London Hard Fork is helping to improve the network’s capacity to process more transactions.
It is predicted that many meme coins will fade into obscurity. In 2021, investors witness left and right pop in the meme coin. For instance, the spinoff of dogecoin Shiba inu increased by 44,540,000 percent last year. And, squid, a cryptocurrency name after the popular Korean Netflix series “Squid Game” rose to 75000 percent and then fade away immediately after a week.
Arcane research states that the 2021 crypto market cannot be summarise without mentioning the absurd meme coin rally. They said that it has become a historic relic of the absurd time of 2021.
Binance Coin (BNB)
The increase in $1 billion in daily trade volume makes the Binance coin very popular these days. However, keeping the huge volatility into consideration, analysts predicts a vast plunge in its prices. Yet, some bull experts expect a surge of the $1000 mark by the end of 2022.
It has been estimated that USD coins are willing to overtake Tether as the biggest stable coin because of its market valuation. Arcane research said that this innovative lending product will pay out higher yields for stablecoin deposits as it is the primary driver of its growth.
Although Solana coin witnessed a growth back in February, it didn’t feel the crash that happened in late spring as sturdy as ETH and BTC. Its value broke in mid-August and then continuously rise till mid-September, after a slow surging is witnessed in June or July. by 2022, experts are predicting stability in its price by $3000 or even top by $400.
Bitcoin To Remain Close With The VIX
Last year, investors witnessed a stellar run in the stock market. But, according to Arcane Research, one pattern crystallized. This pattern is concerned with the fear in the broad financial market affecting the prices of Bitcoin directly.
The surge in the Cboe or VIX volatility index has been accompanied by bitcoin selling. Arcane Research has warned that market headwinds in 2022 could affect bitcoin price development in the short term.
In 2020, some analysts predicted the reason behind the sudden rise in Dogecoin. They later claimed that it is a worthy investment. In 2022, it is estimated to top $ 0.27 by the end of this year and reach $0.3 as the year begins. It becomes a worthy long-term investment.