Two 2022 Predictions: S&P 500 and Bitcoin/Ethereum – The Average Joe

    Two 2022 Predictions: S&P 500 and Bitcoin/Ethereum

    Victor Lei — Head of Research

    December 9, 2021

    S&P 500

    December 9, 2021

    S&P 500: Wall Streets’ 2022 predictions for the S&P 500 are the widest in a decade — Inflation, COVID and changing monetary policies are making forecasting difficult.

    • S&P 500 forecasts are ranging between 4,400 to 5,300 — implying a 6% drop or a 12.7% increase.
    • The S&P 500 is currently trading at 4,701 — up 27% from 3,700 at the start of 2021.

    At the start of 2020 — the highest year-end prediction on the S&P 500 was 4,400. Current levels blew those predictions out of the water.

    Ned Davis Research’s chief strategist (via Bloomberg) expects the S&P 500 to fall by at least 10% before bouncing back to finish off at 5,000.

    Bitcoin: According to Mike Novogratz, CEO of Galaxy Digital (via CNBC) — Ethereum ($ETH), the second-largest crypto by market cap — becomes more promising compared to Bitcoin ($BTC) as the Fed injects less money into the economy.

    • Bitcoin is up 70% this year while Ethereum is up 500%.
    • Bitcoin’s dominance has fallen from 70% of the total crypto market cap at the start of 2021 to 40% now.

    With the Fed expected to slow down bond purchases (i.e. inject money into the economy) even faster next week — other large cryptos could continue to erode Bitcoin’s dominance.

    Don’t forget the big upgrade to Ethereum (Ethereum 2.0) which could come as early as 2022 — another potential catalyst for Ethereum.

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