Will Bitcoin Reach $100K in 2022?

Altcoins were the coins making moves last week as bitcoin and ethereum moved to consolidate at new all-time highs. As bullish momentum continued, ex-Goldman Sach’s hedge fund manager, Raoul Pal, outlined the reasons why he believes the current bull run may not end until 2022. Echoing Pal’s sentiment, on-chain data from Ecoinometrics also showed that bitcoin and ethereum may still yet rise to $253,000 and $22,000 respectively over the next few months. Elsewhere, XRP is now scheduled to integrate with Ethereum’s DeFi space and the dreaded US infrastructure bill is passed by the House of Representatives. 

• Ex-hedge fund manager suggests crypto bull could extend into 2022
• Halving data infers bitcoin could top at $253K
• XRP comes to the Ethereum blockchain as wXRP
• $1 trillion US crypto-tax infrastructure bill approved by House of Representatives
• FC Barcelona jumps into the NFT sector

Crypto bull run to extend into 2022?

Ex-Goldman Sachs hedge fund manager and founder of Real Vision, Raoul Pal, this week speculated that he believed the current cryptocurrency bull run is likely to continue into 2022.

In a Real Vision interview, Pal admits that he envisions the bullish run will continue until somewhere between March and June 2022. “My guess is that we probably have a sell-off, and then it rips again because that is the path of most pain, and markets tend to take the path of most pain.” He believes that the path of most pain could be in December.

In his interview, Pal implies that on-chain data suggests that the current move in the cryptocurrency markets is not like the patterns seen historically with the 2015 and 2017 bull cycles. Unlike previous bullish cycles, which have ended in December, he believes that the cycle will extend due to upcoming catalysts.

Pal believes that the upcoming Ethereum 2.0 upgrade and a potential ETH ETF will be the two most important catalysts on the near-term horizon. “All of that means that we’re likely to see an extended cycle, and I think it extends into between March and June, and that would be a new phase.” With the effects of the bitcoin futures ETFs most recently seen, it is not inconceivable that an Ethereum ETF will have a similar uplifting impact.

During the same week, the Global Markets Managing Director of Goldman Sachs suggested that Ethereum could be on for a rise towards $8,000 over the next two months. According to the write-up by ZeroHedge, Sach’s analysts state that the comparison between Bloomberg’s Galaxy Crypto Index and the USD 2y forward 2y inflation swap shows that digital assets have traded in parallel with inflation breakevens since 2019.  While not definitive, Goldman analysts believe that rising inflation may well encourage higher crypto prices – particularly for ethereum.

Halving data infers bitcoin could reach $253K

In addition to Pal’s synopsis, data was released from Ecoinometrics that suggested if bitcoin and ethereum follow historic halving cycles, the price of the two digital assets could extend to $253,000 and $22,000 respectively. 

Although the leading cryptocurrency has seen monumental growth through 2021, there could be room for a further 300% increase. Since the 3rd halving event, which took place in May 2020, bitcoin has increased by 7.3x. While impressive, during the previous halving cycle the coin experienced a 29.5x increase. This would place bitcoin at a price of $253,800. 

The same graphic also highlighted that although ethereum has experienced a 24x increase, it previously topped at 120x. A 120x increase from the halving event in May would place the coin at $22,300. 

Biden’s crypto-tax $1 trillion infrastructure bill approved

An infrastructure bill, initially proposed by President Biden’s administration for the improvement of national transport and internet service provision was passed by the United States House of Representatives last week. Importantly for the crypto community, the bill also includes a crypto-tax requirement for all US citizens.

If signed into law by President Biden, the new bill may dictate that all digital assets worth more than $10,000 will need to be declared to the Internal Revenue Service (IRS). 

Initially aimed towards more traditional brokerage institutions, upon drafting, there was little differentiation in the bill between brokers and the software developers, validators, and node operators that are involved in the general upkeep of the cryptocurrency infrastructure. Although that clarity was argued for by several members of the Senate, the bill was initially approved by the Senate on August 10. The House of Representatives has now also passed the bill with a vote of 228-206.  

Many lawyers have voiced concerns over the new bill, implying that although the failure to comply with certain tax provisions would be classed as a felony, compliance with regards to digital assets or NFTs is nearly impossible. After the upcoming signature by the President, the Treasury Department will ultimately determine how the bill is interpreted and then publish guidance for those involved.

XRP to be added to Ethereum blockchain

Although Ripple, the developers behind XRP, are battling the Security and Exchange Commission, that appears not to have slowed down the company’s innovative progression. Last week it was confirmed that the XRP coin, native to the XRP Ledger, will be added to the Ethereum blockchain via a wrapped version – wXRP.

Wrapped XRP, or wXRP, will be added to the Ethereum blockchain in December thanks to a partnership between Wrapped.com and HEX Trust. The news was shared with the community by a tweet from David Schartz, the Chief Technology Officer of Ripple on November 1. 

“Wrapped XRP is coming to Ethereum! Great news for those that want to access XRP within Ethereum wallets, DeFi, and smart contracts. It’s a multichain after all.”

The wXRP token will be pegged to XRP at a ratio of 1:1. While following the price of XRP, wXRP will be used with smart contracts on the Ethereum blockchain, which will allow XRP holders to utilize decentralized applications (dApps). The increased utility and demand will be particularly advantageous in the decentralized finance (DeFi) ecosystem.  

FC Barcelona jumps into the NFT craze

One of the most prestigious football clubs in the world, FC Barcelona, has released a nostalgia-heavy NFT collection that documents key moments from the club’s history. The collection of NFTs will either display an image or a short video clip highlighting an event from the club’s 122-year history. 

The NFTs are being initially listed for sale on the Israeli-based NFT platform, Ownix, and will be compatible with the Ethereum blockchain. According to FC Barcelona’s report, the club wishes to become a “benchmark in this type of newly-created digital asset.”

The president of FC Barcelona, Joan Laporta, commented on the news during the week. “Barça has a very large fanbase around the world and is leading the way in the digital domain with over 400 million followers in social networks. Given this scenario, the Club is constantly looking for new ways to connect with its fans, and we believe that creating these NFTs is a unique opportunity to continue growing and consolidating the Barça brand by bringing unique moments that have made Barça fans dream and FC Barcelona a well-known club on every level.” 

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