Bitcoin in 2022, fundamental analysis.
Bitcoin fundamentals might be mixed in 2022.
On the positive side, inflation is at a very high level, El Salvador and billionaires are buying the dip(s) and other countries are considering laws to make it legal tender. There's a very constant and positive maturing process and this will act as a tailwind.
Nevertheless, don't go all in just yet. Bitcoin is still mostly tracking the record high stock market and is still considered more of a risk asset rather than a safe haven. Central banks are getting hawkish and are signaling that we need to cool down the infernal printing machine that has resulted in a stock market bubble during a global pandemic! This will trigger investors to potentially have a tamper tantrum, like in 2018. A flight to safety might happen and USD, CHF, JPY and Gold might benefit. On the other hand, more "risk on" currencies will suffer like EUR, GBP, AUD, NZD etc. along with stocks. Bitcoin is a strange beast because it has a fixed supply, is now legal tender, but still too new to be 100% seriously considered by very traditional investors during a downturn who will continue to trade their usual playbook.
If you have money to spare and want to get in, this is not a terrible time. If you want to try to be "smart" about getting in, you could wait and see. If Bitcoin breaks the ATH, jump in. If it bounces strongly off the 30K support again, it's also probably time to board the train.
On the positive side, inflation is at a very high level, El Salvador and billionaires are buying the dip(s) and other countries are considering laws to make it legal tender. There's a very constant and positive maturing process and this will act as a tailwind.
Nevertheless, don't go all in just yet. Bitcoin is still mostly tracking the record high stock market and is still considered more of a risk asset rather than a safe haven. Central banks are getting hawkish and are signaling that we need to cool down the infernal printing machine that has resulted in a stock market bubble during a global pandemic! This will trigger investors to potentially have a tamper tantrum, like in 2018. A flight to safety might happen and USD, CHF, JPY and Gold might benefit. On the other hand, more "risk on" currencies will suffer like EUR, GBP, AUD, NZD etc. along with stocks. Bitcoin is a strange beast because it has a fixed supply, is now legal tender, but still too new to be 100% seriously considered by very traditional investors during a downturn who will continue to trade their usual playbook.
If you have money to spare and want to get in, this is not a terrible time. If you want to try to be "smart" about getting in, you could wait and see. If Bitcoin breaks the ATH, jump in. If it bounces strongly off the 30K support again, it's also probably time to board the train.
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