Christopher Vecchio, senior currency strategist at DailyFX, says 2022 is very unlikely to be a good year for coins even
Christopher Vecchio, Senior Currency Strategist at DailyFX, a subsidiary of the IG Group, recently said Yahoo finance that he would be very surprised if Shiba Inu and Dogecoin had a good 2022.
He thinks only Elon Musk would be able to save these coins by “pumping” them on Twitter:
I would be very surprised if Dogecoin and Shiba Inu have a good New Year unless someone like Elon Musk sends them on Twitter.
While Vecchio is also bearish on Bitcoin, he is convinced that the King is going to be the least affected cryptocurrency. Altcoins and even coins, however, will suffer “deeper and deeper” losses, the analyst predicts.
Vecchio adds that Bitcoin is going through ‘a crisis of faith’ with the larger crypto market after the flagship cryptocurrency fails to meet the $ 100,000 target that was predicted by the stock-to-flow model highly publicized Fundstrat analyst Tom Lee and many others.
It also highlights the fact that on-chain transactions have decreased with the number of active wallets.
Bitcoin finished 2021 at $ 46,439 on the Bitstamp exchange, printing its highest annual close on record. However, the major cryptocurrency is also down 31.74% from its current high.
Many market participants who expected six-figure prices this year may contribute to the sentiment disappointment:
Relaxing further from here would not be a surprise.
Central banks withdraw support
Vecchio says 2021 has been “a banner year” for the relaunch, but he expects things to be drastically different this year.
The US Federal Reserve is also set to raise interest rates.
Additionally, Democrats are unlikely to retain control of the House and Senate, which will likely lead to deficit reduction:
Risk urges are starting to turn the page… This speculative fervor could be extinguished to a certain extent.