Bitcoin Cryptocurrency Price 2022: Predictions, Suggestions By Experts

Bitcoin Cryptocurrency Price 2022 (Predictions and Suggestions): 2021 was arguably one of the most happening years for Bitcoin and other crypto assets. The year not only witnessed massive spikes in prices of several crypto tokens on different blockchains but also the beginning of a whole new era of NFTs and metaverse.

While no one exactly knows what the future holds for crypto assets, industry insiders are hopeful of another fruitful year for this truly 21st century global phenomenon. As many of them say that crypto industry is just starting out and even the oldest of all cryptocurrencies – the Bitcoin – is still in the early stage. More maturity may bring more stability.

There is certainly no lack of enthusiasm among those who are already into crypto. But uncertainties due to lack of regulations, extreme volatility and the very fact that all the hype around crypto is not very old, give rise to several types of fears among investors, especially those who can’t afford to lose.

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To get a sense of what the year 2022 holds for crypto investors in India, FE.com interacted online with several leading crypto industry insiders and experts. Take a look at what they say if you are invested in crypto or planning to do so in the New Year. (Edited Excerpts)

Nischal Shetty, Founder, WazirX

What may be the price of Bitcoin by the end of 2022?

No comment

How can crypto investors protect their money going into 2022?

It’s crucial for crypto investors to not give into FOMO and do their due diligence before investing in any crypto. You should bear in mind is that crypto is a high risk, high reward investment option, and invest based on your risk appetite. Investors should also beware of get-rich-quick scams or people who promise to double the invested amount, etc. Most importantly, use legitimate exchanges that follow KYC and AML guidelines.

What are your predictions for crypto markets in India in 2022?

2022 is going to be a very important year for the Indian crypto ecosystem. We expect to see more solutions coming up that will make decentralised blockchains cheaper, faster, scalable and sustainable. Such tech-based disruptions will likely create more new jobs that would solve for India-specific problems with blockchain technology.

We also expect to see Indian institutional investors take a cue from their US counterparts and get onboard to crypto. Lastly, we expect to get regulatory clarity on crypto in India in 2022. This will add much-needed legitimacy to the crypto sector. Positive crypto regulation will not only push Indians in the direction of innovating and building, but also in generating employment thereby contributing to our $5 Trillion economy vision.

Edul Patel, CEO and Co-founder, Mudrex

What may be the price of Bitcoin by the end of 2022?

Bitcoin has transitioned itself from a speculative asset class to a store of value. The entire cryptocurrency market is benchmarked against the performance of bitcoin. Several large institutions, and now even countries, hold a sizable chunk of Bitcoin in their portfolio. The one-year price prediction for bitcoin is a tad bit tricky, considering the massive volatility associated with it. However, before the end of 2022, we might see Bitcoin crossing the $100,000. We could see this somewhere early next year, and following that, the market might go through a correction phase.

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How can crypto investors protect their money going into 2022?

Cryptocurrency investors ideally should never put more than 5 to 7% of their portfolio into crypto. It’s always a good strategy to go for dollar-cost averaging or DCA, wherein you invest small chunks at regular intervals. Diversification is another solid pillar that helps one protect against unnatural events.

What are your predictions for crypto markets in India in 2022?

2022 is likely going to be an eventful year in terms of cryptocurrency regulations in India. The discussions regarding the cryptocurrency bill have already made a lot of headlines. The coming here would likely clear the air surrounding the confusion in the crypto market.

Darshan Bathija, CEO and Co-Founder, Vauld

What may be the price of Bitcoin by the end of 2022?

Bitcoin, as the newest asset class relatively speaking, will only mature and become less volatile with more time and volume. While It is extremely difficult to make short term price predictions, previous trends indicate that each cycle has ended roughly higher than the previous cycle. While it is unlikely we may see the parabolic rise we saw in 2020 and years prior, it is still likely that Bitcoin will hit a new ATH in 2022.

How can crypto investors protect their money going into 2022?

Investing in the right digital asset can be difficult. What needs to be taken into account is the project’s reliability and key characteristics. One needs to look at the collective trust a coin’s community places in the project. Another feature that one needs to look at is the project’s USP. Additionally, one needs to be more prudent in evaluating risk appetite. Similar to traditional finance products, where diversification is important! The rule applies to the crypto markets as well.

Gaurav Dahake, CEO and Founder, Bitbns

What may be the price of Bitcoin by the end of 2022?

We expect 2022 to be another bullish year for bitcoin and hope to see bitcoin hit the $100,000 neighbourhood.

How can Crypto investors protect their money going into 2022?

A little market knowledge will help crypto investors go a long way in investing in cryptocurrencies. Investors are advised to do their homework and not just follow investing in coins just for namesake. With the crypto industry still in its nascent stages and high volatility to be expected, we always advise investors to explore a Systematic Investment Plan (SIP) for investing to mitigate this risk and still get crypto exposure.

What are your predictions for crypto markets in India in 2022?

As more number developers, artists and innovators enter the crypto industry, we are bullish about the strong growth of Crypto in 2022 and to be seeing Crypto becoming a popular asset class and mainstream investment avenue, especially by young earners. We expect the regulators to implement rules to protect the retail investors and foster the industry, rather than a complete ban.

Soumya Choudhury, Associate Professor of Fintech, JAGSOM

What may be the price of Bitcoin by the end of 2022?

Bitcoin is the most liquid cryptocurrency (virtual currency built around cryptography) followed by ether. The market cap is close to US$ 1 Trillion as per Statista. As can be seen, the price fluctuates based on supply-demand and alternate emotions of “greed and fear” exactly like the speculative investment cycle on a stock exchange.

The exact value is hard to predict though the range will be near the US$ 1 Tn zone into most of calendar year 2022 as seen based on past price movements. There is unlikely to be a dent from panic selling in markets where private cryptocurrencies may be banned like in India since the significant share of demand may remain in more developed markets like US, Russia, Switzerland, Estonia and Australia.

How can crypto investors protect their money going into 2022?

Only investors who are willing to live with dramatic upswings and downswings in their cryptocurrency portfolio holdings should stay invested. Others should redeploy their investments to safer asset classes. If cryptocurrency assets is a necessity, the portfolio should include a mix of freely floating cryptocurrencies including bitcoin and ether and some pegged cryptos (semi-fiat) like Stablecoin or USD Coin. In cycles where bitcoin appreciates, investors could look at shifting to a lower valuation multiple cryptos like ether and so on. Avoid hyped and lesser-known cryptos irrespective of the backers like Elon Musk or other prominent personalities since there could be a conflict of interest.

The above advice assumes that investing in and holding a wallet of cryptocurrencies is legal in the domicile country of the investor.

(Disclaimer: The above predictions/suggestions/recommendations are those of respective commentators, not of financialexpress.com. Cryptocurrencies are not regularised in India. Investing in them could lead to loss of money. Please consult your financial advisor before investing in crypto assets.)