Crypto 2022 Prediction – Will this year be Bullish for Bitcoin, Ethereum and LUNA?
In the last few days, cryptocurrencies have been moving up again in price. Bitcoin and other altcoins rose within 24 hours, some even by double-digit percentages. But can this upward trend continue? What is the forecast for cryptocurrencies in 2022? Let's analyze in this crypto 2022 prediction article.
Crypto 2022 Prediction - What will Happen this year?
The year 2022 has been very difficult for the cryptocurrency market so far. In January and February, the prices of most major cryptocurrencies fell sharply. In February, however, there was a slight trend reversal and prices were able to stabilize. Then there were slight gains in March before stronger gains came towards the end of the month.
The strong gains of Bitcoin and altcoins give hope that cryptocurrencies can also rise in the medium and long term. The forecast for cryptocurrencies for the rest of 2022 could be very good, as we just started the very first uptrend of the year.
What causes Cryptocurrencies to rise and fall?
Cryptocurrency prices are determined by supply and demand. As the demand for cryptocurrencies increases, more people buy the coins and the prices of the individual cryptocurrencies rise. The development of the overall market is still extremely dependent on the development of the Bitcoin price.
The Bitcoin price is very difficult to predict in the short term. The price is very volatile. However, if we see increases in the Bitcoin price, the prices of the other cryptocurrencies almost always move in the same direction.
What determines Bitcoin Prices?
Bitcoin is a cryptocurrency that is inherently deflationary. Only a total of 21 million bitcoins can be created through bitcoin mining in the bitcoin network. The difficulty of this mining process increases with the number of bitcoins. This makes Bitcoin deflationary, which causes its price to increase over time.
So in the long term, we see price increases in bitcoin. These are difficult to predict. However, previous price developments often indicate possible future price developments. Historically, bitcoin has had multiple cycles that included a bull market and a bear market. These cycles each lasted 4 years. A crucial time is the respective Bitcoin Halving. In the 1.5 years that followed, the Bitcoin price rose sharply.
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What is the forecast for cryptocurrencies in 2022?
Based on the Bitcoin cycles, it can be concluded that the big bull run that occurred at the turn of the year 2013 and 2017 has not yet happened in this cycle. This gives hope that Bitcoin will still go through this bull run. The cycle in this case has only lengthened.
With a slight delay, there have also been bull runs in altcoins in recent cycles. This was the case in January 2018. If the forecast is correct that Bitcoin will still rise massively in 2022, then the remaining cryptocurrencies should also rise sharply.
Other Factors affecting Cryptos in 2022
In addition to historical price developments, there are other factors that speak in favor of a positive forecast for cryptocurrencies in 2022. In the first quarter of 2022, there were many negative external factors that negatively influenced the Bitcoin price and thus also the price of other cryptocurrencies. These included:
- The discovery of the new virus variant
- The outbreak of the Ukraine war
- Announcements of interest rate hikes by central banks
- Generally, poor performance of tech stocks that have been heavily influencing the Bitcoin price lately
- Strong selling in the bitcoin forex market
All of these negative influences took Bitcoin from its all-time high of $68,000 in November to $35,000 in February.
The negative impact of these factors should weaken over the next few months. At the same time, good fundamental data on the Bitcoin blockchain speak for an increase in the Bitcoin price in the coming months. This should positively influence the forecast for all cryptocurrencies in 2022.
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Read more: https://cryptoticker.io/en/crypto-2022-prediction-will-this-year-be-bullish/
Text source: CryptoTicker
