Okay folks, so as we head into 2022, one of the most closely watched and anticipated sectors is going to be the cryptocurrency market. With crypto assets having record runs in 2020 and 2021, Some people are expecting 2022 to be the year of reckoning, and others are expecting it to be the year of higher and higher highs. And it's funny if you look at something like a Bitcoin or an Ethereum back during the start of the pandemic, you saw Bitcoin get cut from just under 10k to just over 5k. and then later on it went into the 60s.

and then with Ethereum, You, of course, also had a severe similar cut from 272 to 121. And then, well, the rest is history, and despite some huge volatility throughout this year overall, they've both held their upper end ranges very, very well. But the crypto market seldomly goes multiple quarters without having massive moves into new highs or massive moves into new lows. And so in this violent video, I want to go with you step by step, line by line, through the biggest analyst opinions on Bitcoin and the cryptocurrency market for 2022, as well as some other predictions that you're going to want to know about.

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So make sure to lock in lifetime access before that coupon code expires. Okay, Crypto folks. So let's start with some analyst projections. Jesse Powwell, the Ceo of Kraken, which is, of course, a cryptocurrency exchange and bank, said he expects Bitcoin to end the year in the six-figure territory.

He thinks that growing mainstream awareness and increasing regulatory clarity could usher in a better year for the largest cryptocurrencies in 2022. Your Bitcoin, your Ethereum, your cardano. He doesn't think a massive crypto winter is around the corner. He says you look at the 10-year chart and that tells you everything you need to know.

He told insider he thinks that Nfts will power the 2022 market similar to how it powered the 2021 market, only to a larger extent. Obviously, Nfts are another point That kind of reiterates why he believes the biggest cryptocurrencies are going to do very, very well next year, Because obviously Nfts are overwhelmingly hosted on the Ethereum network, providing more and more demand for the network and providing a lot more actual value, fundamentally for Ethereum. He also says, if you want to know the direction of cryptocurrency and Bitcoin, why don't you go ahead and look at the tenure chart. If you see anything but up, your eyes are broken, That's at least my characterization of how he would say it.

Obviously, a Ceo of a Crypto exchange is going to be very, very bullish on crypto. so note the source. But here we go. We got a bear.

So Carol Alexander, who is a professor of Finance at Sussex University, told Cnbc that she expects Bitcoin to tank as low as 10 000 in 2022, virtually wiping out all of its gains in the past year and a half. Her bearish call hinges on the notion that Bitcoin has quote no fundamental value and serves as more of a toy than an investment. But what's very interesting about this argument is this is something you'll often see from Bitcoin haters. They'll say, oh, it has no fundamental value.

Oh, it's a toy for children. Oh, my dog chews on it as a dog toy, but then they'll say something like, oh, but it'll take as low as ten thousand. Wait a second backup. So this has no value, but it's going to hold it ten thousand.

It's like wait. if it has no fundamental value. How are you making a four based on what it could be just as easily valued at a thousand or a penny? If you really believe that something has absolutely no fundamental value that it's worth as much as air, Well, how can there be any sort of floor during a crash? Nonetheless, the floor that is incredibly high compared to where this was trading at just like five or six years ago. Are they arguing that Bitcoin is worth more now than it was in 2016 when it was trading at 398 dollars? 398 dollars is a lot less than 10 000..

If Bitcoin had no fundamental value back then, and it still has no fundamental value today, why is it worth 10 000 instead of 398.? Or are they subconsciously admitting that the real value and utility behind a crypto asset is the institutional backing? How many are holding it on their balance sheets? How many people are offering it in terms of crypto services? How many people believe in the long-term viability of it? The international trust in the crypto asset? Those things have grown substantially since 2016, and crypto assets with much better technology come out all the time. But they don't have the same value as Bitcoin, Because guess what? The reputation, and all of these fundamental factors of who's holding it, what they're doing with it, the long-term trust in it. As one of the first movers, the fundamentals behind any currency is the crowd's trust in said currency. It's true with regular, traditional currencies, Fiat, and it's the same thing with the cryptocurrency market.

with Fiat. Obviously, you have the government backing it, but we know that doesn't always work so well in a lot of countries. And then with the cryptocurrency market. Obviously, that authority is decentralized across the blockchain.

But Charlie, they're just saying it has a floor because they know some people aren't going to sell. no matter what happens. Well, why aren't those people going to sell though? Is it because they believe in the long-term viability of Bitcoin as a store value or a payment solution? That's the case. Then they're literally buying it based on a fundamental value that they see fulfilling itself in the next 10 to 15 to 20 years.

Okay, Next you have Armando Aguilor, who is the Vice President of Digital Asset Strategy at Funstrat Global Advisors. He thinks that the Fed's decision to double its pace of tapering and potentially hike rates three times in 2022 combined with the variant supply chain issues and midterms will induce choppiness in the market. Those are my favorite predictions: it's gonna be choppy and then it's like, well, yeah, you're always right with the Cryptocurrency market. If you say it's going to be choppy, however, there's definitely some wisdom and being prepared for both.

Emotionally, He, however, does take a strong approach to where it's going to go. He says he expects Bitcoin to reach six figures by first half of 2022 as institutional adoption and inflation concerns persist. He is specifically bullish on Ethereum, which he thinks will go to 9000 because of the growth of Nfts and demand for D Phi. He says that regulation slowed down D5 investments in the last half of the year, but continued adoption and clear legislation can drive growth next year.

Obviously some notable companies that were under Sec scrutiny this year were Block Fi and Coinbase. Blockfi had the problem with their high yield savings accounts and Coinbase had their problem with the lending feature that they're trying to introduce. The Sec has been using its oversight ability to go and basically halt a lot of the progress in terms of developing in the crypto space. And it's unfortunate, But he's saying that, hey, you're going to see lots of that in 2022.

I don't know why he thinks you're going to see less of that in 2022. It seems to me that as more and more people use cryptocurrency and crypto brokers and all the different features and sweet products around that space, you're just going to see more and more incentive for the Sec to come in and figure out how to regulate it as much as they can. Next you have James Malcolm, who is the head of Fx strategy at Ubs. He thinks that stable coin providers, crypto wallets defy exchanges and so forth will be regulated more like traditional financial market participants.

There's a lot of people that are wondering, hey, wait a second. You have these crypto exchange platforms like Coinbase that are sitting at a market cap of like 60 billion dollars. This is the size of a small to medium-sized bank, and they have very, very little, if any regulation. He thinks that this regulation is going to be very, very unappealing to a lot of players in the space, but that regulation, clarity and ultimate resolutions will be positive and further pave the way for widespread adoption.

There's a lot of people that are scared of regulation, but once you actually get the regulation and we get clear guidelines and it's not insane, then all of a sudden you set the stage for people more trusting in the asset class people, less worried about regulatory blowbacks happening any day, and you have a lot more positivity at least. This is the argument that I'm reading here. Okay, Vladimir Putin, who is the Russian President, a part-time crypto analyst, and also some believe is a previous member of the crypto Kgb, which is like the regular Kgb, but the crypto version They exist on the blockchain. A lot of people don't realize that the Cold War was this close to being fought on the blockchain.

But anyways, he said it is not backed by anything and the volatility is colossal, so the risks are very high. He seems very, very bearish heading into 2022, which statistically isn't surprising because Russia has the highest population of bears. So statistically it makes sense that Putin would be a bear. It also has called for greater monitoring and regulation of cryptocurrencies, but it's worth mentioning that very little regulation on digital assets as a whole exists in Russia so far today.

Okay, Mike Mcglone, who is a senior commodity strategist at Bloomberg Intelligence, thinks that cryptocurrencies will dominate in 2022 and will outperform more traditional investments. He thinks that as cryptos grow in popularity, that traditional asset managers will be forced to participate. This is what we've started seeing this year. A lot of institutional investors were going and buying huge swarths of Bitcoin and to some extent, Ethereum and some of the others.

And what happened while they had this cascading effect, where when other institutional players saw their institutional competitors buying it, they're like, okay, well, we gotta buy it too And then all of a sudden you have these massive massive returns and everybody else is like, hey, we want some of this and you create that self-fulfilling prophecy And then if you're a big fund manager who hates crypto, doesn't believe in it at all, and your clients go and see all of these huge funds making all these massive, massive returns in the crypto space, what are they going to do? They're going to call you up and say, why the hell am I not in this crypto thing So it becomes imperative for a lot of these fund managers if they want to keep their clients to at least allocate a small portion into that cryptocurrency market. And the more the cryptocurrency market stays relevant, the more people are going to be forced to at least allocate a small portion into it, which again creates that self-fulfilling prophecy. Now, I think you're still at the very, very early stages of this, so you're not seeing a lot of that proof of concept yet. But you're seen enough where it's like, okay, we can see where the trend is heading.

Okay, Diego Monica is the President of Anchorage Digital, which is the first federally charted crypto bank, and he makes an argument from a rising utility standpoint. He says it's no longer just speculative investing in Bitcoin or Ethereum. we're talking about Nfts defy remittances, capital preservation, and many other verticals. He's saying, aka, the actual utility is increasing.

He thinks banks and Fintech will continue to add support for crypto services across the board as well in 2022. So again, this goes back to that whole argument of, hey, crypto has no fundamental value, but what is fundamental value, if not utility. He also says that he thinks that banks and Fintechs will continue to add support for crypto services across the board. If that happens again in 2022, you'd expect more and more crypto assets to be on the balance sheets of institutions and create a lot more confidence in the space.

Now in terms of other risks and predictions heading into 2022 that aren't analyst specific, you have some folks kind of building on our previous point. Some folks are worried that the actual utility of blockchain is far far less than the current market values suggest. And thus, in a bear market, assets can fall dramatically. Now, obviously there's truth to that.

The actual utility is far far underdeveloped. Most assets are so early stage. They're not going to see a lot of the parts of their utility for many years down the road, and some of them are just going to completely blow up and never be seen again. But don't forget that part of the utility is the ability to store capital with big institutions putting billions of dollars in cryptocurrency and more institutions adding the ability to well transact with cryptocurrency or other crypto type services.

All of a sudden, the actual utility goes up over time. It's serving the purpose of holding, preserving, and hopefully growing capital over the long run. Next, and this is one that I really agree with is the threat that excess leverage poses. The insane amount of leverage in the bitcoin market creates the opportunity for huge downside risk if certain levels of support are broken.

The first round of euphoria earlier this year pre-summer came on the backs of massive, massive leverage in the cryptocurrency market. And then what happened while you got this massive sell-off And it triggered a lot of margin calls and de-leveraging which just totally blew so many people out. And then you saw a rebound attempt post-summer and into the fall. And you haven't seen as much leverage at least that we can tell in the data sets.

But this is still one of the most heavily leveraged markets in the world that creates an efficiency where even a small negative catalyst could create a cascading storm of marking calls, which then creates a situation that Bitcoin and the surrounding market have to take a while to recover from. So that's certainly a risk, and that's a threat that's present in 2022.. The other issue often raised is that the Bitcoin broader market has failed to have a parallel correlation with inflationary fears. People say that bitcoin is supposed to serve as a hedge against inflation.

Yet during a lot of the periods where the traditional markers of inflationary pressure went up, Bitcoin didn't this year. But I would argue that the counter to this argument isn't so much that bitcoin serves as an inflation hedge day to day, week by week, or month by month, but that it does year over year. In the long run, it serves as an inflation hedge, but it's not exactly correlated in the short run. People don't think, oh, inflation immediately rush into Bitcoin.

At least they don't think that on a large enough scale. yet I know some people think like that. Next, you have predictions of more El Salvador's developing countries that choose to adopt Bitcoin are transacting Bitcoin as a form of legal tender. More and more countries deciding to use cryptocurrency, Bitcoin or whatever as a legal tender.

It's going to be very, very bullish for the proof of concept of the utility of said asset class. Well, why would they do this? What's really the benefit here? Well, in El Salvador, they saw it as a way for Salvadorians to reduce the huge fees they paid to send and receive remittances. El Salvador's Gdp is 22 from remittances. The money saved on fees can be spent elsewhere in the economy.

Next, you have a trend of venture capital money flowing into crypto startups. If you look at the trend of global venture capital investment since 2012, 2021 has not just doubled or tripled 2020, but it's more than four. Exit Venture capitalists are buy and hold aggressive investors who invest in industries that they believe have a lot of potential over the next 10 to 20 years. And seeing this means you have a lot of unanimous belief in the future of this market, and that should bolster confidence in assets themselves in 2022.

If not, allow a lot of extension of capital into cryptocurrencies themselves, not just cryptocurrency startups. You also have some web 3 hype, which I don't want to go in too much right now. It's very, very early stage and it's very much buzzy. But hey, the trend of next-gen internet being more metaverse based.

being more cryptocurrency blockchain based I believe is definitely a true thing. You also have some speculation on the first spot etf likely to come into the picture in 2022. The one that did come into the picture this year wasn't really a true bitcoin Etf and left a lot to be desired. Let's just say that.

and then lastly, one of the biggest predictions that I would say is a lot more of a guarantee than others on the list is that we are going to experience some level of regulatory blowback on this market this year. That is just a fact. As far as I can see, regulatory authorities are going to want to assert their power, and when they do, it's going to freak out a lot of participants. But after that happens on the other end of the spectrum again, we should see some more certainty, some more clarity, and some more positivity.

Because if you just get that negative cloud of regulatory blowback off the horizon and you give clarity on what the relationship is between the regulators and the digital asset space, then you're going to have a lot more people that feel confident to invest. If you look at the rhetoric from Gensler and a lot of the other folks in charge, it doesn't seem like they're trying to bludgeon the industry, they're just trying to find a reasonable way to regulate it. Now, their idea of reasonable and our idea of reasonable may be completely different, but at the end of the day, we haven't seen a lot of negative rhetoric from them like we've seen in other countries. Okay folks, well that caps off this video.

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Anyways, folks, that's it for today. Have a good one and I'll see you in the next video.