Bloomberg Cryptocurrency Outlook 2022: United States May Accept Crypto Next Year

Key points:

1. Bitcoin, Ethereum, Cryptocurrency, Federal Reserve and Deflationary Forces in 2022

2. Nos crypto-monnaies hardcore en 2022 ? USD, Ethereum, Bitcoin

3. Will Bitcoin open a new bull market in 2021? new generation

4. What could stop the Ethereum bull market in 2022? the price is higher

Due to China's restriction and development of exchange rate technologies such as fixed price coins (mainly centralized stability coins) and NFTs, as well as the impact of reasonable regulation and pricing bullish. , we expect the United States to adopt cryptocurrencies by 2022. Stables can be misnamed as most are pegged to the US dollar. A restriction on the value of fiat currency is expected to drive up prices, especially with Bitcoin and Ethereum, where commodities are scarce.

In 2022, the deeper questions are: What are the implications for the growth of Bitcoin, Ethereum and Stabilitycoins? However, we predict that most emergencies will go through widespread use, such as an almost 50% recovery by 2021. Bitcoin and Ethereum in the US Treasury yield portfolio may shine as recovered commodities and the economy America continued to decline.

Bitcoin, Federal Reserve Thiab Bonds

Bitcoin, Ethereum, Cryptocurrencies, Federal Reserve and 2022: the power of deflation

The Fed's new efforts to remove frustration and declining revenues could indicate that the macroeconomic market in 2022 could be beneficial to major cryptocurrencies, Bitcoin and Ethereum. . At the end of 2021, the market for crypto assets and products will show the difference, which will show that digital assets will be better in 2022.

Figure 1: Is the Fed's Tightening Policy a Dream? Bitcoin may provide the answer

Does Bitcoin Expect the Fed to End the Game?

A major reversal in Fed expectations in 2022 is a fall in the stock market, which could be a win-win for Bitcoin. It is improving towards digital storage at a value based on the standard value of the cryptocurrency, but it is still in value detection and is a risky asset that has grown with the influx of assets. If the market goes down, Bitcoin will face some initial resistance, but for some, a drop in stock prices could negatively impact earnings and boost banks. Money in the middle to raise funds, with crypto -currencies are the main beneficiaries. Figure 1 shows the outlook for the Fed's fiscal year in 2022 on an annual basis. The Fed's attempts to support the tightening cycle have failed, especially after the 2015 hike. This fact indicates that the United States will move to a negative interest rate level after Japan and Europe.

Bond yield and the Bitcoin relationship

Although the gains are generally believed to be higher, long-term US Treasuries still cannot exceed 2%, which could be a significant indicator that the shift to a deflationary environment in 2022 is good for Bitcoin. In February 2020, the long-term contract fell below 2% for the first time, indicating a significant spread. The riskiest assets follow around March. Chart 2 shows that yields on US Treasuries could turn negative, following gains on Japanese and European Treasuries. Future digital assets may be the primary beneficiaries.

Figure 2: Bitcoin may be the biggest beneficiary of low yield products.

Silver has moved away from analog gold to Bitcoin and Ethereum. The problem for 2022 is usually the exchange or acceleration of these resources. As income decreases, we prefer to move our funds to Bitcoin and Ethereum.

Are cryptocurrencies better than the stock markets?

Supporting further gains and losses against the stock market in 2021 could lay the groundwork for a further increase in asset prices in 2022. Not all commodities have experienced a 10% correction since the 2020 decline , but the cryptocurrency market is expected to have a positive trend in 2022. Figure 3 shows that the Standard & Poor's 500 index fell at the end of November, but the Bloomberg Galaxy Crypto index is recovering. Cryptocurrency is a dangerous asset, but its core, Bitcoin and Ethereum, can be turned into a market for valuable assets.

Reducing assets is an important aspect of the joint venture between the two cryptocurrencies. During early adoption and migration to capital markets, digital assets may be more profitable than real estate, but there is a risk of volatility, especially, especially when the Fed cuts its investments.

Figure 3: The Difference Between Crypto Assets and Market Share

USD, Bitcoin, Ethereum

The 3 crypto backbones of the US dollar, Ethereum and Bitcoin in 2022

Cryptocurrency represents a better way to market, a stronger ecosystem, and an asset class that will continue to grow. The bull market for Bitcoin and Ethereum appears to last as long as stable market gains pegged to the US dollar.

Bitcoin, Ethereum et Stablecoins en 2022

Past performance is not an estimate of future results, but if a new asset is performing better than the previous one, someone else should be involved. We believe these processes will play an important role in 2022, as financial executives will face greater risks if they do not continue to release their cryptocurrency data. Figure 4 shows that since late 2019, the Bloomberg Galaxy Crypto Index (BGCI) has risen 1,200%, while the S&P 500 has risen almost 90%. These strong gains usually come with volatility, and nearly 60% of the decline in BGCI in 2021 could lay the groundwork for further increases in 2022.

Figure 4: Growth of the US crypto-dollar and exit from the BGCI

BGCI is 80% of Bitcoin and Ethereum. We expect stability from 2021 to accelerate through 2022, and that's the growth of the stable coin. According to the report, the market value of fixed assets has passed the $ 130 billion mark.

The US dollar dominates cryptocurrencies

Compared to around 15,000 candidates vying for a top position in the speculative arena, strong stability requires a leader in the ecosystem, especially Bitcoin and Ethereum. Binance Coins, Solana, and Cardano have replaced XRP, Bitcoin Money, and Chainlink, which were near their all-time high a year ago. Figure 5 shows the further rise in cryptocurrencies and the trading advantages of Bitcoin and Ethereum. As Shiba Inu and Dogecoin point out, there is a lot of speculation in this area, but our major companies need to hold on. In other words, you need to be in a key position.

Figure 5: Cryptocurrency bull market

Ethereum's share of the total is increasing, especially from around 10% a year ago to around 20%. Most of the stable coins work on the Ethereum platform.

Digital asset bull market: Stablecoins

It is a fixed currency tool that can be traded and exchanged 24 hours a day for US dollars and can earn more interest than European currency with instant payout, and it affects digital devices like Ethereum. This supports the dollar and affects most financial assets. In a world of rapid digitization, the transition to digital currencies is unstoppable. Figure 6 compares the stocks of the top five fixed coins (Tether # 1) with Bitcoin and Ethereum. According to data from CoinMarketCap, Tether the company contains more than Bitcoin and Ethereum combined.

Figure 6: Evolution of the market value since the end of 2019

The crash is predictable, but the emergence of central bank digital currencies has had a positive impact and the world is looking for the dollar.

Bitcoin market

Will Bitcoin launch a new bull market in 2021? new generation

As 2022 approaches, the key question for Bitcoin is whether it is rising or if it is in a bull market. We believe this is the end and we see crypto symbols entering the world of digital collateral. The key support level for 2022 is around US $ 50,000 and the negative support level is around US $ 100,000.

First Bitcoin entry in 2022: 40,000 to 70,000 US dollars

As we have seen, the reason that Bitcoin fertilizes around 50% in 2021 is that the base is bullish and can count on the price increase in 2022. The base of the measurement rate has improved, as evidenced by China's crypto mining and electricity overtaking. consumption restrictions and recovery rates since July. Much of the mining industry has moved to safer areas in the United States and Canada, and the use of electricity by the world's largest economy has shown its strength. Figure 7 shows the new beef industry we've seen, particularly after the low of around $ 30,000 last July.

Figure 7: Announcement to phase out Bitcoin from its fall 2021.

Good support is around $ 40,000, slightly below the 20 week moving average and trendline since July. About $ 70,000 is the distance from the first hit at the top of the chain pattern to the 20 week average.

Is Bitcoin Expected to Hit $ 100,000 in 2022?

The price of Bitcoin appears to be around $ 100,000 in orbit. I think it's only a matter of time, especially given the market base of growing demand and slowing down. Numerous examples show that Bitcoin will continue its adoption in 2022. Exchange rate (ETF) and futures contracts in the United States, Canada and Europe, the exchange rate at 60/40. paper, and good competition in El Salvador all proclaimed bullish trade in international markets. Figure 8 shows the situation where the Bitcoin market is going down, its price is going up, and the exchange rate is on average.

Figure 8: Popularity of Bitcoin and the decline in stocks

It is always desirable to have an exchange rate slowdown in the capital markets, and this is our take on the measurement of cryptocurrency. The annual change is less than 80%, almost the same as in 2018, but at a higher rate, indicating greater migration.

Bitcoin can be more than a digital version of gold.

If the previous pattern repeats itself, Bitcoin's price potential stabilizes at around 100 times an ounce of gold and volatility retreats. Figure 9 shows a good reason why the price of cryptocurrency continues to rise to metal, as Bitcoin's 260-day volatility has seen a rapid recovery after hitting early lows in 2021. In the end from 2016, the relative risk indicator formed a similar background. , because the Bitcoin / gold ratio broke through the resistance of 1x and hit 10x at the end of 2017. According to 2016, the year of halving is another milestone in 2020.

Figure 9: Bitcoin is 100 times more expensive than Gold Volatility

We believe that many unforeseen events will affect this scale. This is the basis for maintaining the value of gold by Bitcoin.

Cheap and mature Bitcoin bull market

We believe that Bitcoin will bring a stop, repair and a new bull market in 2022. Figure 10 shows that the value of cryptocurrencies on November 18 is almost the same as at the end of the first three months. As market depth and adoption increases, volatility continues to decrease and prices will rise. The start of 2021 is the most important for Bitcoin, with the cryptocurrency's 260-day volatility falling to an all-time low against most major assets (particularly the S&P 500 Index). By 2021, the cryptocurrency model will reach 100% and start looking for support with an average value below $ 50,000 this year.

Figure 10: Bitcoin Q4 Same as Q1 (timeline)

A loss of around 50% in the second quarter should support fundamentals. We believe Bitcoin will drop to $ 100,000 rather than below $ 50,000. (11/19/21)

Taicang Bull Market

Higher prices could protect Ethereum's bull market in 2022

Demand Rises, Stocks Are Falling Ethereum's position amid financial and monetary digitization is the basis for further inflation. Ethereum is the leader in crypto assets with the best performance in 2021, and we expect this shift to continue even after falling around 60% in the first half of the year.

The Ethereum bull market wholesale price is $ 4,000-5,000.

Ethereum has reshuffled its priorities this year, while increasing consumption and reducing supplies by 2022. The key question is what the return on investment should be, and more support for the second largest cryptocurrency could fall before she sees buyers. Figure 11 shows the new bull market we are seeing with commodities falling around 60% from the July low. The recall established a key level of $ 4000 and a support level of $ 2000. What has been used as a strike now is support, and $ 4,000 could be a major pillar in 2022.

Figure 11: No impact on the bull market.

Ethereum established its tariffs in 2021 as a major source of non-fungible tokens (NFTs) and platform tokens used in cryptocurrencies, and is expected to expand in 2022. Success drives competition. , but the result is the return of the so-called Ethereum killers.

Ethereum is the biggest beneficiary of Bitcoin ETFs.

The fact that Ethereum has been successful since starting its first venture capital investment to follow Bitcoin on the U.S. stock exchanges could indicate that the second largest cryptocurrency will bring the bull market for a long time. Since the Proshares Bitcoin Strategic ETF (BITO) was first announced on October 19, Ethereum stock has risen 20%. Bitcoin fell about 8%. Ethereum appears to be at the forefront of internet commerce and forms the basis for the development of DeFi, Fintech, and NFT platforms.

Figure 12: Performance of US Bitcoin ETFs since inception

A reduction in supplies with contract changes in 2021 will result in a base lower than the Ethereum price. It is only a matter of time before future ETFs that track Bitcoin appear, if you can capitalize on significant volume and open an interest in the Chicago Mercantile Exchange (CME) futures contract.

Stand by Cryptocurrencies, DeFi et Ethereum

ETHereum is at the forefront of the wave of digitization, tokenization, DeFi, fintech, and NFT. Figure 13 shows the value of the second largest cryptocurrency, approximately equal to the total market value of the cryptocurrency on Coinmarketcap. Most NFTs cost money in Ethereum. In other words, an expanding environment represents the demand for ETH. Bitcoin has slowly become the global digital storage asset and Ethereum is used as a trading platform for the internet. Tether is the most popular cryptocurrency industry. Popular income by playing "Axies Infinity" game run on the Ethereum network.

According to data from Etherchain.org, from August 26 to October 26, around 630,000 ETH (around 50% of original equipment) was phased out, with a monthly average of around 410,000 coins since August 2020.

Figure 13: Ethereum Encryption Platform, Internet Guarantee

Ethereum has gained in depth and dominance. Prosperity Will Lead To Competition From Many Potential Ethereum Killers, But We Can See That The Second Largest Cryptocurrency Has Prevented The Culture Challenge.

Ethereum Provides Low Cost Products

The development of new technology can lead to more competition, but as the market grows we can see the market grows, if the financial rules board uses it, it would be good for the value of Ethereum. Figure 14 shows new Ethereum inventory plummeting faster after a protocol to take tokens out of circulation in August. This is the first time that the 52 week period has not changed at the rate of new Ethereum tokens and that total revenues are expected to fall below 4% for the first time. The demand for the second largest cryptocurrency isn't that direct, but the stock will be lower than that of Bitcoin, which has fallen less than 2% this year.

Figure 14: Supply trends are contributing to the rise in Ethereum prices.