Christopher Vecchio, senior money strategist at DailyFX, has published an important assessment of the year 2022. According to the assessment made by Vecchio, 2022 is unlikely to be a good year for meme tokes. So why did he make such an assessment? How can Shiba Inu and Dogecoin perform in 2022?
2022 Performance Expectation of Shiba Inu and Dogecoin
Christopher Vecchio, senior currency strategist at IG Group subsidiary DailyFX, recently told Yahoo Finance that he would be very surprised if Shiba Inu and Dogecoin had a good 2022. He believes that only Elon Musk can save these cryptos by “pumping” them on Twitter.
The analyst said:
“I would be very surprised if Dogecoin and Shiba Inu have a good year before someone like Elon Musk gets them pumped on Twitter”.
Vecchio is more optimistic about Bitcoin and thinks it is the crypto asset that will suffer the least. However, the analyst argues that altcoins and meme coins may suffer “deeper” losses. Vecchio adds that Bitcoin is going through a “crisis of faith” with the broader crypto market after the flagship cryptocurrency’s very excited stock-to-flow model, Fundstrat analyst Tom Lee, and its failure to hit the $100,000 target.
Bitcoin 2022 Prospect
The analyst does not speak optimistically for the upcoming period. 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 also fell 31.74% from the current record level.
Many market participants, expecting six-digit prices this year, unfortunately did not live up to their expectations. Vecchio argues that this may trigger the decline further. Vecchio claims 2021 is a “successful year” for stimulus, but expects things to be significantly different this year.
The US Federal Reserve is also on the verge of raising interest rates. Also, the Democrats are unlikely to retain control of the House and Senate, which will likely lead to a cut in the budget deficit.
All in all, 2022 could be a tough year for the risk markets and crypto industry.