Christopher Vecchio, senior money strategist at DailyFX, claims that 2022 is very unlikely to be a good year for meme cryptocurrencies.
Christopher Vecchio, senior currency strategist at DailyFX, a subsidiary of IG Group, recently told Yahoo Finance; Shiba Inu (SHIB) and Dogecoin (DOGE) He said that he will be quite surprised if he has a good 2022 and it is unlikely that these two meme coins will rally.
Saying that there is not much gas left in the tank of meme coins, the analyst believes that these cryptocurrencies can only be saved by Elon Musk’s “pumping” on Twitter:
“I’d be pretty surprised if Dogecoin and Shiba Inu had a good year unless someone like Elon Musk pumped them on Twitter.”
While Vecchio is also bearish about Bitcoin, King believes crypto will be the least affected cryptocurrency. However, the analyst predicts that altcoins and meme coins will experience “more and more deep” losses.
Vecchio, king of cryptocurrency; He adds that Bitcoin, like the broader crypto market, is experiencing a “crisis of faith” after it failed to meet the $100,000 target projected by Fundstrat analyst Tom Lee and many other analysts with the stock-to-flow model.
It also points out that on-chain transactions have dropped along with the number of active wallets.
Bitcoin closed 2021 at $46,439 on the Bitstamp exchange, its highest annual close ever. However, the leading cryptocurrency is still down 31.2 percent from its current all-time high and is trading at $47,550 at the time of writing.
Many market participants expecting six-digit prices this year may have contributed to the drop in sentiment:
“It wouldn’t be a surprise if things continue to pull back from here.”
Central Banks Withdraw Their Support
Vecchio claims that 2021 is a “successful year” in the revival and promotion of crypto, but expects things to be significantly different this year.
According to the analyst, the Federal Reserve in the United States is on the verge of raising interest rates, and Democrats are unlikely to retain control of the House and Senate, which will almost certainly lead to a narrowing of the budget deficit:
Also, Democrats are unlikely to retain control of the legislature and Senate, which will most likely lead to a budget deficit cut:
“Risk impulses are poised to weather the crisis… This speculative fervor may diminish to some extent.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.