Bitcoin to $100,000 by 2022? There are many analysts and experts who have predicted this stellar listing for Bitcoin within a few months, but on the reasons that should lead to these heights, the explanation given by one of the top experts in the field, Samson Mow, CSO of Blockstream, is definitely one of the most unique.
Bitcoin at $100,000 in 2022
In fact, according to the Sino-Dutch expert, Bitcoin’s quotations will rise a lot until reaching $100,000 and even beyond when the pressure of sales started from China dies down at the beginning of the year, after the ban imposed this summer by Chinese authorities.
Sell pressure from China should ease up after year end.
— Samson Mow (@Excellion) December 20, 2021
“There is significant sell pressure [from China] at the moment.”
That’s what Mow said in an interview with BeinCrypto newspaper on December 20. But soon, this pressure will ease, and this will lead Bitcoin quotes to rise up to $100,000 by the end of 2022.
Also, Mow, who is considered as one of the main advisors to the government of El Salvador for the implementation of the infrastructure for the legalization of bitcoin, referred to the upcoming closure of the activities of the main exchanges in the country, such as Huobi and Binance, which inevitably led many investors to sell their positions on Bitcoin and cryptocurrencies in general.
Selling pressure from China
Also corroborating this thesis would have come to a very recent report, as documented by Coindesk, which certifies how the selling pressure on Bitcoin came throughout 2021, mainly from Asian markets. According to the report, most of the gains since the beginning of the year made by Bitcoin and Ether, which were 60% and 420% respectively, would have come during American hours, from 8:00 to 18:00 ( 14:00 to 22:00 European time).
According to data from Glassnode, provider of data and metrics for investors and blockchain companies, this pressure would have had a major acceleration in the months of November and December.
But according to Mow, this trend is set to die down as the new year begins:
“It’s not so much that Chinese money is leaving the market, but that there is uncertainty right now about trading venues and access to trading. People are selling and sitting back in RMB [Chinese yuan],”
China’s ban has resulted in capital flight
China’s ban on cryptocurrencies has resulted in a real flight of capital and industry players from the country. Especially for mining, which in China had concentrated about 65% of its global activities, the ban on operating has forced many factories to move abroad to countries, such as Canada, Kazakhstan, or Texas, where there are optimal conditions from the energy point of view to be able to carry out the activity of cryptocurrency mining.
But also on the cryptocurrency investors themselves, the ban has resulted in a migration of capital to other shores. According to cryptocurrency software and services company Chainalysis, over $50 billion worth of cryptocurrency has been transferred from Chinese digital wallets to other parts of the world in the past year.