Many analysts expect big things for Bitcoin soon as institutional capital is injected into the market.
The chances of the crypto market turning green in the first week of January is good. This is the part that economist and trader Alex Kruger calls “the impact of the first week of the year.”
On Wednesday, Kruger tweeted, “Over the past year, Bitcoin has shown a positive return in the first week of January, ranging from 7% to 36% between 2018 and 2021.” Obviously, BTC in 2021 has increased from $28,653 to $41,441 in the first week of January.
His optimism in January stemmed from his expectation that there would be strong “capital inflows.” That seems to align with Real Vision CEO Raoul Pal’s opinion. He believes that the bitcoin sell-off is over and that January is a good start because institutional money is being reinvested in the market.
David Lifchitz, chief investment officer at ExoAlpha, believes institutions are still selling to lock in tax losses. It is possible that the rally in the first week could be related to this.
Meanwhile, Nigel Green, CEO of fintech and wealth management firm deVere Group, believes December has become what he calls “the worst month for bitcoin since May 2021” and “seller panic sends cryptocurrencies to wealthy buyers”
Nevertheless, he believes in the largest cryptocurrencies by market capitalization in the long run. Green believes that Bitcoin can protect investors from global inflation and that “decentralized, borderless currencies are the future.”
But not everyone is optimistic about the cryptocurrency in 2022. Carol Alexander, a finance professor at the University of Sussex, said, “BTC could fall to $10,000 in 2022. She is very skeptical and believes BTC has no fundamentals and has reached the peak of the cycle.”