5 Themes That Might Influence Your Bitcoin Investment in 2022
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The stars appear to be aligning for bitcoin in 2022. Inflation continues to rear its head in the economy, eroding the purchasing power of consumers, institutional investors have begun to dip their toe into the crypto waters, and mainstream investors are finally coming around to the idea of a digital currency. Plus blockchain gaming has taken the industry by storm, and bitcoin is making its presence in this niche known.
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While the leading cryptocurrency failed to live up to the most ambitious price targets from 2021, it is still up 46% for the year and has several potential catalysts that could potentially fuel the bitcoin price in 2022.
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1.) Inflation
Inflation is currently hovering at 6.8%, sending consumer prices rising at their fastest rate in nearly 40 years. While shoppers continue to face sticker shock, Americans are looking to place their hard-earned savings somewhere it won’t evaporate. That’s the problem bitcoin is designed to solve, thanks to bitcoin creator Satoshi Nakamoto, who warned about the rise of inflation back in 2009.
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2.) Bullish Price Predictions
Fundstrat managing partner Tom Lee told a Market Rebellion roundtable that 2022 should be a good year for bitcoin. Lee expects bitcoin not only to attain the $100,000 level in 2022 but also potentially achieve $200,000 per coin, even if it sounds “fantastical.”
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3.) Institutional Adoption
Institutional investors started coming off the sidelines in earnest in 2021, starting a chain reaction that is likely to spill over into 2022. Billionaire hedge fund trader Paul Tudor Jones has thrown his weight behind bitcoin over gold as a hedge against inflation and believes the flagship crypto is “a great way to protect wealth over the long run.”
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4.) Mainstream Adoption
Bitcoin got closer to mainstream adoption than ever before when El Salvador revealed that it would make the biggest cryptocurrency legal tender in the Central American nation. El Salvador President Nayib Bukele has also unveiled plans to build a Bitcoin City, the funds for which he plans to raise with bitcoin bonds.
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Swipe Up To Read The Whole Of The Article And The Last Theme To Watch For In 2022
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