Hello everyone, 2021 has been an insane year in the crypto market. Many people are wondering whether this madness will proceed in 2022. There's been no lack of forecasts with some adage we'll enter a super cycle of successive all-time highs and others saying that the end of cryptocurrency is near. In today's article, I will try to provide my perspective on the cryptocurrency market for 2022.
My Crypto Outlook for 2022
Anytime that we look at a chart, what we're really doing and when we're identifying these patterns and when we're looking at technical analysis the patterns that form and when we're identifying support and resistance levels really what we're doing is studying human psychology and human behavior as it relates to markets and this helps us to inform our future decisions. However, you can't simply look at a chart pattern and know everything that's going on and that's because of the fact that chart patterns and as they relate to human psychology don't form in a vacuum. Human psychology forms around the macroeconomic level picture as well therefore you have to consider what's going on on the outside. The policies of the FED - the central bank of the united states in conjunction with covid have led to a situation where there is increasing inflation. I think a lot of the uncertainty you've seen in the last few weeks has been based on some of the statements that the fed has made lately. Namely, they are going to be pursuing a policy of quantitative tightening, but what is quantitative tightening? In a very simplified explanation - The Fed prints money or creates money, gives it to banks, banks then lend to individuals and businesses and corporations which stimulates the economy. The fed also buys assets such as risk assets and what quantitative tightening is when they reverse this policy so they're going to start getting those risk assets off of their balance sheet and this is simply to help fight inflation so they will raise interest rates to decrease lending because when there's all this money flowing around in the economy it really raises the price of goods so the reason that we've been seeing this withdrawal since late November is because of concern that the fed is going to be increasing the interest rates. To sum up this part, the Fed has made a lot of trouble, but a lot of opportunities especially for this year for Institutions.
I don't think 2022 is going to see this place where we see nothing but institutions just completely dumping in and going all-in into bitcoin and other cryptocurrencies. I just don't think that's going to happen but I do think you're going to see them testing the markets and they're going to do it in positions that are advantageous to them. The best price for them is not at 60.000$ but at around 30.000$.
We actually were seeing this when we got down to around 33.000$ we saw certain wallets just acquiring mass levels of bitcoin. What this means is is that I think you're going to start to see in 2022 is more institutions that are interested in getting into bitcoin if it's already gone through their board approval process etc. I suspect that based on what they've seen in the past it's likely going to be somewhere approaching those levels between 30.000$ all the way down to 20.000$.
Taking into account the factors I mentioned above, I see two possibilities for the crypto market this year. In both possibilities, institutions will be slowly entering the crypto market. Depending on how the global economic situation will be looking, either the consolidation will continue or there will be an increase to a new ATH. However, it is worth noting that both cases are very good in terms of long-term investments. However, I will try to focus on this year assuming that the second option proves to be true.
The metaverse, NFTs and Blockchain Gaming
The metaverse narrative will continue to grow just like NFTs and blockchain gaming. They have many positive effects on cryptocurrency adoption at the individual level, but also they will drive the adoption of cryptocurrency at the institutional level. We've effectively a lot of major brand companies get into nfts the most recent being Adidas whose nft assortment figured out how to momentarily turn into the biggest by trading volume.
While facebook's meta rebrand is considered by numerous individuals to be the beginning of the current metaverse development assuming you make a couple of strides back you could say we have headed in that course as of now henceforth why Zuckerberg chose to hop on board. People are spending increasingly more of their time online and more of this online time is being spent immersed in multiplayer video games rather than social media platforms. We can expect that the up-and-coming age of online media stages will be indistinct from metaverse games. At the end of the day, almost certainly, the following online media platform will be a blockchain game and this is a crypto specialty that is likewise being investigated by huge name companies in the gaming business like Ubisoft.
Scams will not disappear, there will only be more of them!
Scams were, are, and will be. This is unavoidable in our decentralized world. The largest amount of tokens that have no purpose or value are usually created in the up-trending market. Simply because this is when the number of people who are interested in the crypto world increases. Usually, they see in this world a fast good income, however, usually, they are the victims of such scams, unfortunately. The most important thing in all this is to do your own research before buying a token and also not to succumb to crowd pressure (read FOMO), especially on Twitter.
Best Coin for 2022 That Will be Trending in My Opinion
Many opportunities and many chances can be found in this crypto world. It is difficult to grasp what is a good investment and what is not especially since we can now find a gigantic number of coins that have different use-cases. In this section, I will present coins that I think will be trending this year.(However, keep in the back of your mind to always do your own research before buying a coin.)
Fantom ecosystem is amazing and in my opinion, this is going to be the best token in 2022, but why? I'll give you a few reasons:
FTM is designed to be efficient scalable and secure. When the Fantom foundation created its blockchain they not only wanted to build a fully decentralized platform to solve problems inside the crypto ecosystem but one that could be used for companies of different sectors worldwide. In other words, Fantom is a scalable and open-source blockchain that wants to facilitate global transactions with high efficiency and sustainability supported by the ultimate generation of distributed ledger technologies. It aims to become a powerhouse protocol and just about every other day it seems to be recording a new low on average block time even when the transaction count is a metric that is itself increasing significantly.
What makes Fantom different from other blockchains is its new consensus based on DAG technology. DAG's are structures that have been known in the mathematical and computer world for many years. They are even much older than blockchain technology itself but they've recently come back into the limelight due to the technical possibility of building distributed systems identical to those using blockchain, but here's the question: Why did phantom pick this technology instead of blockchain? Well, more people use blockchains like bitcoin and ethereum. Their inefficiency is becoming more and more evident. However, with DAG technology Fantom can process several connected nodes at the same time which allows for much greater speed scalability and transaction security.
Fantom is suitable for multiple use cases therefore with Fantom transaction protocol businesses from every sector of the economy can drastically optimize the performance of payments from their clients for example: imagine that a food delivery company is using Fantom platform and a client orders food and pays with FTM tokens therefore once the food is delivered the platform will pay to the business with the same tokens. In case of food isn't delivered the client can ask for food replacement or perhaps request a refund and all this decision making is going to be automatically executed by Fantom smart contracts in a safe, fast and reliable way.
Nfts are great but gas fees sure are not, but what if there was a layer 2 protocol that could solve that problem one built specifically for nfts, well there is and it is called Immutable X. Immutable X is the first zk rollout based layer 2 scaling solution for non-fungible tokens on ethereum. Essentially it's a solution to the high gas fees and scalability issues that we're experiencing on the ethereum network when minting and trading nfts. This scalability issue is primarily because ethereum current underlying proof-of-work architecture can only process up to 10 to 15 transactions per second and thus cannot withstand the amount of trading demand that this year-long nft frenzy has ignited. Due to the incessant congestion inconsistency and network latency trading on the ethereum blockchain has simply become unfeasible. ETH 2.0 really cannot arrive soon enough. This is where immutable x comes in. Immutable X is the fruit of a partnership between two well-established players in the blockchain and gaming development spheres Immutable and Starkware. Founded back in 2018 and previously known as fuel games immutable is a Sydney-based blockchain gaming and digital asset technology company spearheaded by brothers James and Robbie Ferguson. The gaming and nft focused immutable raised 2.4 million dollars in a seed round of July 2018 led principally by Nirvana Capital and Continue Capital with participation from Coinbase Ventures. Subsequently in september 2019 immutable raised an additional 15 million dollars In a series a funding round led by heavyweight vcs such as Galaxy Digital. This was in order to grow its in-game nft ecosystem and develop its flagship game Gods Unchained. In September of this year Immutable raised a whopping 60 million dollars in a series b round spearheaded by gaming and esports vc Bitcraft with participation from other heavyweight entities such as Alameda Research Airtree Ventures and Vaynerfund to name just a few.
More about IMX you can find here.
LooksRare is the community-first NFT marketplace with rewards for participating. That means it is a community-first nft marketplace actively rewarding traders collectors and creators for participating. Their marketplace is still in works and in my own point of view is that it is very exciting to watch them truly build out in public. The participants of the space will be vocal and they'll have their good hits and they'll also have their miss. I'm here all for it now is this an open sea killer but why? First of all, Looksrare take with 2% fees instead of 2.5% percent that OpenSea was charging. 0.5% is huge because It is a difference that could go to the artist or the team or yourself when you're selling nft. Secondly, they brought something completely different which is being able to do what is called a make a collection offer.
More about LOOKS you can find here.
Multichain (Previously Anyswap) (ANY)
Anyswap is a Cross-Chain Router Protocol (CRP), envisioned to be the ultimate router for Web3. To be honest, I have been following Anyswap for quite some time and then they pulled off something that I didn't think is possible and what that is is an essence allowing Cross-Chain trading for basically low fees. Back then I thought that is amazing and then I lost track for a little bit. Recently I started to dig little deeper and I realized that they are going to pull this off and they are way ahead of everyone else. So they have a first-mover advantage which is crucial in crypto projects.
More about ANY you can find here.
Each of the tokens I have mentioned are available on BitYard. Bityard is one of the many exchanges available out there but unlike them, Bityard offers a lot of products such as Crypto, Commodities, or Forex. Bityard also offers copy trading. Bityard copy trading allows you to copy professional traders. More about Bityard you can find here.
For each post entered into the MyCryptoOutlook contest that uses the tag 'TheGivingBlock', BitYard will donate 50,000 SHIB through The Giving Block!
The Giving Block is the first crypto donation solution, which provides an ecosystem for nonprofits and charities to fundraise Bitcoin and other cryptocurrencies, be found by crypto donors, receive funds instantly, and become part of a network of crypto media partners to support their missions.
There is much more to come this year. It's hard to say if there is more good than bad but I can say for sure that it will be a very exciting year when it comes to the crypto world.
Hope you found today’s article helpful. If you want to learn more about trading follow me at @Fizz-on-my-Jayce. Have a nice day :)