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Crypto forecast of the Leading Coins for 2022 — The Year Of The Black Water Tiger

01.01.2022 |

Long-term exchange rate forecast

We specifically indicated in the title the symbol of the coming year according to the Chinese calendar. It was China that exerted significant pressure on the world of cryptocurrencies last year, ousting large miners from the country. Elon Musk also influenced the prices with his tweets, forcing the rate to “fly to the moon”, then falling to the local bottom. However, starting from about the second half of 2021, such effects had less and less impact, and prices were increasingly subject to the balance of supply and demand and the prospects of regulatory restrictions in certain countries.

If we talk in general about the cryptocurrency market, then the forecast can be made approximately as follows - the stabilization of the leading cryptocurrencies with the growth of altcoins and meme coins.

Bitcoin Prices in 2022

In the first days of the year, the bitcoin dominance index dropped below 40%. This indicates an increase in demand for alternative coins, primarily for Ethereum, which is only twice as small in capitalization. Thus, we can say that the demand for bitcoin has decreased, increasingly moving to the rank of long-term investment instruments. This, without a doubt, will help stabilize the prices of the first cryptocurrency, which will only increase the trust of the authorities of developed economies.

The first quarter of 2022 may pass under the sign of bears for the first cryptocurrency. This is indicated by historical reality. There is a possibility, and this is partly indicated by technical analysis, that the price of the first cryptocurrency in January-March will drop to $ 30,000, with small spikes during the Chinese New year.

In fact, it’s not even that bad, of course, if the investor’s goal was not to make a quick profit, and the coins were not bought at historical highs. The constant growth of the hashrate of the first cryptocurrency and the increase in the complexity of mining will force many miners to turn off old and inefficient equipment, which will reduce the burden on the environment and update the global ASIC fleet.

But starting from the second quarter, there may already be an increase in bitcoin in 2022. It is unlikely to be as fast as in 2021, but the probability of reaching the $84,000 mark by the first of January 2023 is very likely. It is this price that seems fundamental in the current economic situation.

Ethereum Prices in 2022

But the second most capitalized cryptocurrency looks more confident. Although the brainchild of Binance in the form of BNB gained popularity last year, a centralized management structure will not allow the coin to reach such heights.

In 2021, Ethereum broke the 20% mark on the dominance index. At the same time, the potential for growth of quotations for 2022 in the distributed registry of smart contracts remained. If bitcoin still has the potential to grow only twice, then Ethereum has the opportunity to rise in price five times, relative to positions on January 1, 2022.

So the price of the second largest cryptocurrency by capitalization has every chance of reaching the $20,000 mark. The NFT market, as well as the ever-increasing area of distributed finance, will contribute a lot to this. All this will increase the demand for Ethereum, which, coupled with the balance of supply, will lead to a significant rise in price.

The launch of ETH 2.0 is also expected, which will make this cryptocurrency one of the most environmentally friendly, especially in terms of the conventional unit of transferred value. Also, we must not forget that stacking will take on a sufficiently large number of coins, which will further reduce the supply of Ethereum in free circulation. This is what allows us to talk about such a large growth.

These articles are not instructions for investing and do not provide guarantees, it’s only for informational purposes .