Bitcoin regularly defies expectations for 2021 with both dizzying highs and lows. Naturally, investors can feel like they're starting 2022 with no strings to guide them through the maze of what's to come.
Finally, investment analyst Anthony Pompliano shared his crypto outlook for 2022 and explained why the new year will change the way most investors think about Bitcoin.
Will Bitcoin Become Basic?
Pompliano noted how Bitcoin adoption plays out in the “cohort” in reverse, by starting with individuals online and then spreading through traditional financial institutions and corporations to an entire country – El Salvador. The investment analyst also noted that the Wall Street giants are being forced to review their Bitcoin strategy – even if they don't want to join the trend.
However, the price of Bitcoin is a completely different story. Pompliano admits that the incorrect top coin makes it easy to guess what will happen next. Even so, he said,
One of the things I'm keeping an eye on is that the timeframes of each month can be off. We might actually be seeing longer bull markets now, instead of the 18-month kind we've seen before.
Furthermore, Pompliano has brought up a topic that is causing a stir among other analysts. This is the idea that Bitcoin's price action is now somewhat parallel to 10-year Treasury yields, rather than in the opposite direction. What does this mean for an everyday Bitcoin investor? The jury has yet to consider the matter, as more data is needed. But for his part, Pompliano thinks the narrative around risky assets and Treasury yields may be changing. He say,
But if Bitcoin could indeed trade with it again – we need more data – but if that is true, in some crazy way, interest rate hikes could be an uptrend. price for Bitcoin.
The price of fame…
Previously, Pompliano, Plan B, and a host of other analysts confidently predicted that Bitcoin would bid farewell to 2021 from the $100,000 price point. However, this is not the case as the New Year has dawned.
At the time of writing, the king coin is trading at $47,098.09 and the market is in a state of fear.
According to AmbCrypto