Some analysts are expecting big things for Bitcoin shortly once institutional selling has subsided and capital gets deployed to the market. Some crypto market analysts are highlighting the potential for a green first week on the crypto markets in January as part of what economist and trader Alex Krüger calls the “first week of the year effect.” Krüger pointed out in a Wednesday tweet that for the past four years straight, Bitcoin (BTC) has enjoyed positive returns in the first week of January ranging from 7% to 36% between 2018 and 2021. In 2021, BTC grew from $28,653 to $41,441 in the first week of January.
When asked what had happened in previous years, Krüger replied, “Tbf only 2020 and 2021 matter, different markets, so do with those two data points as you will.”
His optimistic outlook for early January comes from his expectation of strong “fund inflows,” which appears to be in line with the sentiments of Real Vision CEO Raoul Pal. Pal said in a YouTube interview on Monday that he believed the sell-offs on Bitcoin were finished and that January would have a strong start as institutional capital gets reinvested in the market.
ExoAlpha chief investment officer David Lifchitz believes institutions are still selling even with less than 24 hours remaining in 2021 in order to lock in tax losses. It’s possible that a January first week rebound could be correlated with the phenomenon.
Fintech and wealth management firm deVere Group CEO Nigel Green believes that December has shaped up as Bitcoin’s worst monthly showing since May of 2021 due to what he calls “panic sellers practically giving away their cryptocurrencies to wealthy buyers.” He is bullish on the largest cryptocurrency by market capitalization for the long term, however. Green feels that Bitcoin can protect investors from global inflation and that “borderless, global, decentralized currencies are the future.”
Not everyone is bullish on crypto in 2022, however. Carol Alexander, professor of finance at Sussex University, told CNBC that BTC could tank as far down as $10,000 in 2022. She is a skeptic, however, who believes that BTC has no fundamental value and that it has already reached its peak this cycle.
Related: MicroStrategy purchases 1,914 Bitcoin, now holds almost $6B in crypto
A more informed take comes from Todd Lowenstein, chief equity strategist of Union Bank. His view is that “Goldilocks conditions,” such as the COVID financial stimulus packages and low-interest rates that benefited high asset prices, are coming to an end, which will have a significant negative impact on BTC and traditional markets in 2022.
“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.”
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | ![]() |
Bitcoin predictions | 59.2% | 88 | $19 140.20 | 0.69% | -10.68% | $365 286 501 881 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ![]() |
Ethereum predictions | 54% | 93 | $1 052.12 | -0.25% | -14.42% | $127 732 400 345 | ||
3 | ![]() |
Tether predictions | 91.6% | 1 | $0.999073 | 0% | -0.04% | $66 020 314 113 | ||
4 | ![]() |
USD Coin predictions | 95.6% | 1 | $1.000180 | 0.03% | 0.02% | $55 812 644 858 | ||
5 | ![]() |
Binance Coin predictions | 65.2% | 75 | $216.97 | -0.05% | -9.70% | $35 426 838 093 | ||
6 | ![]() |
Binance USD predictions | 92.4% | 1 | $1.000661 | 0.08% | 0.04% | $17 558 830 487 | ||
7 | ![]() |
XRP predictions | 68% | 69 | $0.316937 | 1.69% | -12.93% | $15 321 697 757 | ||
8 | ![]() |
Cardano predictions | 66.8% | 72 | $0.448043 | 0.04% | -11.32% | $15 122 596 829 | ||
9 | ![]() |
Solana predictions | 68% | 70 | $32.98 | 0.94% | -19.51% | $11 325 363 890 | ||
10 | ![]() |
Dogecoin predictions | 66.8% | 62 | $0.066106 | 1.00% | -14.30% | $8 770 292 754 | ||
11 | ![]() |
Dai predictions | 94.8% | 1 | $1.000314 | 0.02% | 0% | $6 923 688 572 | ||
12 | ![]() |
Polkadot predictions | 68% | 67 | $6.72 | 0.35% | -17.69% | $6 633 125 820 | ||
13 | ![]() |
TRON predictions | 66% | 74 | $0.065691 | 3.85% | -4.12% | $6 075 697 886 | ||
14 | ![]() |
UNUS SED LEO predictions | 73.6% | 54 | $5.88 | 2.75% | 0.12% | $5 608 593 130 | ||
15 | ![]() |
SHIBA INU predictions | 71.2% | 63 | $0.000010 | 1.24% | -13.41% | $5 530 696 233 |
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2022 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.