Bitcoin has risen 7%–36% in the first week of January each year since 2018. Bitcoin is a digital currency that makes it possible to transfer money securely and anonymously across the internet to someone else. It also doesn’t require a bank or government to process transactions. This means there are no transaction fees and no need for identity verification. For these reasons, Bitcoin has become popular among people who want to make large purchases without alerting their financial institution. The volatility in the cryptocurrency market is something we all have come to know and love (or hate).
Once institutional selling ceases and capital starts flowing into the market, analysts expect big things for Bitcoin.
Trader Alex Krüger, an economist and crypto market analyst, says there’s a potential for a positive start to the year on the crypto markets in January.
In an article published Wednesday, Kruger points out that for the past four years straight, Bitcoin (BTC) has experienced positive returns in the first week of January that range from 7% to 36%.
As of the first week of January, BTC rose from $ 28,653 to $ 41,441.When asked how the previous years compared, Krüger replied, “Tbf only 2020 and 2021 matter, different markets, so do with those two data points as you wish.”
In a YouTube interview on Monday, Real Vision CEO Raoul Pal said he believed the sell-offs on Bitcoin had ended, and that he was optimistic for early 2019.
David Lifchitz, chief investment officer at ExoAlpha, thinks institutions are still selling even with less than 24 hours left in 2021 in order to lock in losses. A rebound in the first week of January may be related to the phenomenon.
The CEO of deVere Group, a fintech and wealth management firm, believes that Bitcoin’s market performance in December will be its worst since May of 2021, due to panic sellers giving their cryptocurrencies away to wealthy buyers.
Although Green sees Bitcoin as the biggest cryptocurrency by market capitalization in the long run, he believes it can protect investors from global inflation. He believes decentralized, global, borderless currencies are the future.
Not everyone is bullish on crypto in 2022, however.
BTC could tank as low as $10,000 by 2022, according to Carol Alexander, a professor of finance at Sussex University. She, however, is skeptic, believing that it has no fundamental value and is at its peak.
Todd Lowenstein, chief equity strategist at Union Bank, suggests that the goldilocks conditions of low interest rates and the COVID stimulus packages are ending, which will have significant implications for asset prices
“Goldilocks conditions are ending and the liquidity tide is receding which will disproportionately harm overvalued asset classes and speculative areas of the market including cryptocurrencies.”
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
