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Arcane research predicts that Bitcoin (BTC) will outperform the S&P 500 next year

  • According to Arcane Research, 2022 will be no different from 2021, as Bitcoin will once again surpass the S&P 500.
  • Ethereum is expected to continue to outperform Bitcoin next year, but its market capitalization will remain lower than Bitcoin.

Blockchain data research firm Arcane Research has made an interesting prediction of the cryptocurrency market, highlighting some of the key events of 2021. In a report entitled ‘The Weekly Update’, Arcane Research revealed that Bitcoin has outperformed than gold and the stock market for three consecutive years. The 73% surge in Bitcoin in 2021 did not take anything from the S&P 500 and the gold, which increased by 28% and 7% respectively. However, the initial cryptoasset had a much more volatile year compared to the stock market.

According to Arcane Research, there will be no difference between 2022 because Bitcoin will be better than the S&P 500 again. The report also found that the price of Bitcoin was largely feared in the wider financial market. For this reason, institutional investors now recognize it as a risk asset. Bitcoin, on the other hand, had a big fight against Binance coin even though the asset outperformed the stock market.

According to the report, Binance’s base rose 1344% in 2021. This is partly due to the growth of Binance Smart Chain, which has gained market share from Ethereum. If you compare the performance of Ethereum and the performance of Bitcoin in 2021, you will get quite interesting results, as the second largest cryptocurrency by market capitalization increased by 455%. Next year, Arcane Research predicts that XRP and Cardano will break out of the top 10 largest cryptocurrencies through market capitalization.

Tier 1 networks will continue to outperform Ethereum – Arcane Research

Furthermore, just as the fear and greed index provided some opportunities for ‘thick skinned investors’ to accumulate more cryptocurrencies in 2021, a similar cycle will occur in 2022, as the fear and greed index will provide opportunities for investors to buy the fall.

The report also cites the multi – year break as one of the most interesting aspects of the year. Ethereum is expected to continue to outperform Bitcoin next year, but its market capitalization will remain lower than Bitcoin.

Tier 1 networks like Solana, Terra Luna, Fantom, Harmony and Avalanche were better than Ethereum in 2021, in 2022 they will be no different. They will continue to take market share from Ethereum in terms of funds stored on these networks, and users.

Another interesting feature is the increase in meme coins. According to the report:

Meme coins will safely deteriorate, making them a historical remnant of the absurd times of 2021.

This year has been a pioneer for intangible signals (NFTs). This will continue into 2022 as traditional gaming companies continue to explore the possibilities of implementing NFT in their games. In 2022, interest in cryptocurrencies will decrease elsewhere, but Microstrategy will continue to buy Bitcoin.

In addition, while there were 172 M&A transactions involving cryptocurrencies, which is almost three times more than the previous record year, 2018, the number will be even higher in 2022. Many cryptocurrency companies will also go public in 2022 and some will receive. valued at least $ 5 billion. In addition, the Bitcoin hashrate, which fell about 40 percent after the crackdown in China, will hit 300EH / s in 2022. Currently, it is more than doubling from the bottom. The Bitcoin hashrate was predicted to spread geographically as miners settled in new places like Latin America.

Jean Simmons

Jean Simmons has been a cryptocurrency enthusiast since 2014 and has been dedicated to the topic on a daily basis since she first learned about Bitcoin and blockchain technology. Besides cryptocurrency, Jean studied computer science and worked for two years at a blockchain startup. At Mercayala, he is responsible for technical issues. His goal is to bring cryptocurrencies to the world in a simple and understandable way.

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