Here are the Bitcoin Trends for 2022 that you want to know. As you know Bitcoin is slowly maturing as an asset. As it does, Bitcoin’s market structure is changing as a result.
Bitcoin’s Extending Cycle
A lot of people were surprised to see the way Bitcoin performed last year. It was a pretty meh year to say the least. A lot of people expected to see the usual peak towards the end of the year. However that did not happen because the cycle is extending. Like was described as a possibility in this article when will Bitcoin top this cycle.
The Market Structure is Changing
However it is not just the cycle that is extending, but the structure is changing. The Bitcoin chart is not like the previous 2013 or 2017 cycles. It was initially, but then it started doing its own thing.
This is likely down to two things. Firstly the people who are buying up Bitcoin and secondly what is going on overall in the market.
According to Raoul Pal a co-founder of Real Vision, there is institutional money on the side lines. They are waiting to get into Bitcoin. As a result the market structure will change because of them. Retail investors will have less impact on the Bitcoin market.
His theory is that institutional investors need time to get settled back at work. Then they can start figuring out what investments they are going to make. Bitcoin is going to be one of them.
So far the first part of January didn’t work out that way. However it looks like investors are picking their moment when they want to jump onboard. At the end of day everyone prefers buying an asset at a reduced price.
Bitcoin Trends for 2022: What to Expect
Raoul is thinking that the first part of the year is going to be explosive. However Gregory Mannarino, a trader who previously worked for Bear Stearns thinks that this year is going to be volatile. He said “expect extreem volatility in the crypto space”.
This is one of his top trends for 2022. He means that although cryptocurrencies are volatile you should expect more volatility than usual.
This is partly because of the central banks that are printing huge amounts of money. You also have to factor in what is happening to other markets. Additionally if they increase interest rates that is not good for crypto overall. So expect some ups and downs depending on what Jerome Powell says.
Let us hope we all come out of this relatively unscathed and happy with Bitcoin’s performance 🙂