As the year-end approaches, too many forecasts make the headlines around the cryptocurrency market, and experts keep trying to figure out the next steps that the industry will walk on. Bitcoin (BTC) is looking to gather momentum to extend beyond the all-time highs after consolidating around the $32,000 and $40,000 levels for some months, and the focus is on which could be the next tough nut to crack for crypto.
Still, analysts are eager to know what will happen in terms of adoption, regulation on the industry’s development – factors that would set the tone for 2022 and which could be decisive for a sphere that looks forward to delivering more excitement in the years ahead, even if bearish news comes to light.
Bitcoin Floor for 2022
Philip Gradwell, Chief Economist at Chainalysis, shouted at a prediction on Bitcoin holding the $36,000 price floor for the next year, as it would be feasible to see a buy-and-hold maneuver from people around the world’s largest cryptocurrency by market capitalization.
That said, such a bottom can be kept even during the summer of next year, which is a period of the year where usually the crypto market enters a corrective phase.
Addressing Environmental Issues of Crypto Mining
On the other hand, as crypto mining’s adoption keeps rising among people, with an industry enveloping in several countries, the environmental issue has also been another hot topic. Experts from Analytics Insight believe that the crypto industry will surely address these environmental concerns by reducing the carbon footprint on Bitcoin mining.
Of course, magic or immediate solutions won’t arise from these discussions. Still, the industry could start addressing a matter aligned to the ongoing environmental plan that the world is also following nowadays.
Ethereum and 2022
The same analysts also expect Ethereum to bolster its presence for 2022, whose market capitalization levels could increase significantly, and its global adoption rate can skyrocket to threaten Bitcoin’s dominance. That’s because of the smart contracts and easy-to-use payments methods offered on Ethereum’s blockchain.
Illicit Use of Cryptos
An interesting prediction came from Gradwell about cryptocurrencies usage by criminals. He noted that as crypto adoption rises, the number of illegal transactions will decline. So far, Gradwell argues anti-money laundering programs are able to track and catch millions of dollars in criminal activity and laundering via Bitcoin.
In addition, he believes that regulations and law enforcement will continue to become more sophisticated in their approaches in the coming years, which will make being a criminal more difficult.
Will Bitcoin Reach Levels Over $200,000?
Circling back to Bitcoin, Bitcoin investor, and billionaire venture capitalist Tim Draper remains optimistic that the digital currency will reach $250,000 by the end of 2022 or early 2023. One of Draper’s arguments is that, at the moment, most Bitcoin engineers are trying to improve the currency.
Also, he tends to believe that its adoption will skyrocket by then, as mainstream companies keep endorsing cryptocurrencies within their business lines. On whether he’s concerned or not about the environmental issue of mining Bitcoin, Draper said that big banks also have their environmental responsibilities.