5 Bitcoin Investment Themes to Watch in 2022

The stars appear to be aligning for bitcoin in 2022. Inflation continues to rear its head in the economy, eroding the purchasing power of consumers, institutional investors have begun to dip their toe into the crypto waters, and mainstream investors are finally coming around to the idea of a digital currency. 

While the leading cryptocurrency failed to live up to to the most ambitious price targets from 2021, it is still up 46% for the year and has several potential catalysts that could potentially fuel the bitcoin price in 2022.

1.) Inflation

Inflation is currently hovering at 6.8%, sending consumer prices rising at their fastest rate in nearly 40 years. While shoppers continue to face sticker shock, Americans are looking to place their hard-earned savings somewhere it won't evaporate. 

2.) Bullish Price Prediction

If 2021 taught the cryptocurrency community anything it's that nobody knows exactly what bitcoin, or any crypto for that matter, is going to do. Market experts were calling for bitcoin to hit $100,000 in 2021, and bitcoin ultimately finished the year below $50,000 after peaking at close to $69,000 in November. 

3.) Institutional Adoption

Institutional investors started coming off the sidelines in earnest in 2021, starting a chain reaction that is likely to spill over into 2022. Billionaire hedge fund trader Paul Tudor Jones has thrown his weight behind bitcoin over gold as a hedge against inflation and believes the flagship crypto is “a great way to protect wealth over the long run.”