Christopher Vecchio, senior strategist at IG Group subsidiary DailyFX, made comments to Yahoo Finance about Shiba Inu and Dogecoin. Vecchio stated that the fate of cryptocurrencies is up to Tesla CEO Elon Musk.
Vecchio claimed that the influence of Tesla CEO billionaire Elon Musk is quite critical for these altcoins. Vecchio predicts that the pump movements achieved by the Musk effect will slow down in 2022. Claiming that it will be a tough year for DOGE and SHIB, the analyst claims that 2022 will be a real surprise for the two joke tokens.
"BTC will be the least affected cryptocurrency in the drop."
DailyFX senior strategist Christopher Vecchio emphasized that Bitcoin will be the cryptocurrency that was least affected by the decline. However, he predicts that altcoins and meme coins could see deep losses. Vecchio stated that the leading cryptocurrency went through a crisis of faith in the wider market after events such as the deviation of the S2F model and the failure of Tom Lee's $100,000 target.
Vecchio 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 reach 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.
"Risk impulses are getting higher and higher."
Expert analyst Vecchio reminded that 2021 was a successful year for incentive policies. But many things are expected to be significantly different this year. The interest rate policy operated by the FED will have a large share in shaping the year 2022. The Democrats are unlikely to retain control of the legislature and senate. This will most likely lead to a cut in the budget deficit. Risk drives are rising.