MMoney from institutional investors in 2022 will help drive up the price of bitcoin, especially with more venture capital funding in the new year.
According to a Bloomberg article, venture capital money poured into cryptocurrencies to the tune of $ 30 billion, reversing all of the previous years. More interest from venture capital money came as bitcoin’s all-time high was boosted by a bitcoin futures exchange-traded fund (ETF) that finally hit US markets in October.
While bitcoin itself is primarily seen as a store of value given that it doesn’t have the same use case as, say, Ethereum, it is still representative of the entire crypto space. -cash. This space is constantly expanding with increasing interest in non-fungible tokens (NTFs), the metaverse, and blockchain technology as a whole.
“We have gone beyond digital gold. We have financial services, art, gaming as a sub-category of NFT, Web 3.0, decentralized social media, gaming to win – all of these made investors think, “We don’t have enough money. exposure, ”said Spencer Bogart. , general partner of Blockchain Capital LLC, based in San Francisco.
This is a clear sign that venture capitalists see that there are opportunities beyond cryptocurrency. Interest in other crypto-related companies will hopefully trickle down to further price increases for bitcoin and other alternative coins.
“Investors fund anything and everything,” said PitchBook analyst Rob Le.
Bitcoin Crossing $ 100,000?
How far can bitcoin go in 2022? If venture capital money can continue to flow into cryptocurrencies, bitcoin should benefit as the main cryptocurrency.
More ETF providers may seek to submit more bitcoin-related products to the Securities Exchange Commission (SEC) for approval. The SEC recently made give a boost for bitcoin funds at the spot price, but as long as there is demand for more bitcoin-related funds, providers could continue to tweak products to overtake the SEC.
In the meantime, capital markets will be watching what bitcoin is doing in 2022 now that it has reached a level of mainstream finance recognition. Some analysts predict a price of $ 100,000.
“While some traders are now questioning the validity of the stock-flow price model, crypto analyst and pseudonymous Twitter user ‘DecodeJar’ still sees BTC surpass the price by $ 100,000 in the coming months and according to the analyst, the price could climb to $ 250,000 by the end of 2022 ”, a Cointelegraph article said.
#Bitcoin upper sliding scale model.
1 / Conservative / early projection:
Halving-to-top projected at the same pace: June 7, 22.
2,618 Extension in wave 5: $ 190,233.
2 / Extreme / Late Projection:
Bottom-up projection at the same rate: December 19, 22.
3.618 Extension in wave 5: $ 251,971.
Thread 👇 pic.twitter.com/XP605JZgXg
– Steve⚡ (@decodejar) 12 December 2021
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