The cryptocurrency market is going to grow and be a big investment in 2022 as it was the year before. The two most important digital currencies to watch will also remain the same: Bitcoin and Ethereum.
When it comes to predicting real prices and therefore the best moves you could make in this market, the two are somewhat different. Ethereum is always a little harder to predict and carries a little more risk.
Do your due diligence
When it comes to investing in cryptocurrency, preparation is key. It is important that you do your due diligence and educate yourself about the currency and the markets in general before making a call and spending your money.
The same goes for mining – when cloud mining bitcoin make sure you choose a good supplier and that you have prepared for the technical parts of the process. Investing that time and effort will pay off in the long run. There’s no reason to give in to the fear of missing out and rushing things.
The magic number
The number everyone had in mind when it came to Bitcoin prices was $100,000. This target was not reached in 2021 and it remains the target in 2022. Predictions are that the price can be reached in the coming year, but it is still a stretch and there is no no investment certainty.
The peak of $69,000 was reached in November, which was in line with the four-year forecast made by the analyst working in the cryptocurrency space. Predictions are made based on the fact that scarcity is built into the digital currency itself since a limited amount of Bitcoin can exist.
Some analysts believe that the bar is too low when it comes to Bitcoin price at $100,000. They believe it will exceed that around June of next year. However, some have claimed that regarding the price for 2021 as well.
This is partly because the Bitcoin market is no longer a niche market, but an investment that more and more people are aware of and want to get their hands on as the value rises. It’s up to you to decide who to trust.
Digital currencies and Bitcoin in particular are now accepted as a mainstream investment and perhaps more importantly as a mainstream form of payment. This is what will affect its price the most, in 2022 and beyond. At this point it is possible to pay for goods and services using Bitcoin and this is no longer a novelty.
Keep in mind that this will also mean governments will be more interested in bitcoin and the revenue from it. The days when governments were unaware or unprepared for digital currency are now over. This will be an added expense for everyone involved.
Ethereum network effect
Ethereum has one advantage over other digital currencies and that is its network effect. It is the best option for those using the currency for smart contracts. Some believe this is the future of the digital currency industry – for it to be used to facilitate transactions and payments, rather than for story value.
This is why it is important to consider Ethereum as the whole system, including the blockchain and the currency. This is where the future of the currency will lie, in 2022 and beyond, as it becomes more popular.
Most experts agree that at this point faith in cryptocurrencies is bound. This means that the value of Bitcoin fell in July last year and so did Ethereum. There is a good chance that Ethereum will overshoot its predicted mark a bit, even if Bitcoin did not.
The results will also not be stable for the two currencies. The price of Ethereum is going to increase in the first months of 2022 since it has been the case every year since the currency has been on the market. It will probably drop sometime after that, as that was also part of the pattern.
The average price
The average price of Ethereum is not expected to exceed $4,000. If so, it will likely happen in the early months of 2022 and it will drop from there and return to the predicted price of around $3800.
While there won’t be any dramatic increases in Ethereum’s value, you should be reassured that there won’t be any dramatic drops either. This kind of consistency is generally good news for investors, as it means buying Ethereum is a sure thing.
High end predictions
As for the more optimistic predictions, some believe that Ethereum’s value could exceed $4,000, but that will not be its average price throughout the year. There will be a peak at the beginning of the year and during this time it is safe to assume that the price of Ethereum may reach $6,600.
Those who make predictions in Coin Price Forecasts are even more optimistic than that. They claim that the price of Ethereum may reach $7,400 in the first months of 2022. It is important to be careful, but these numbers are something to keep in mind.
The cryptocurrency market is now bigger than it has ever been. More and more currencies are released all the time and the general public is more interested in this market than it was before. These other small digital currencies can affect the price of big players.
Ethereum and Bitcoin are still the biggest names in the game and they will not be affected by newcomers to the market. Chances are that their prices will drop a bit when new currencies appear, but they tend to bounce back quickly afterwards, at least that was the case until now. Investing in these currencies is therefore a safe route in 2021.