3 Huge Crypto Predictions for December 2022

With only a month left before the year ends, the crypto market has taken investors and traders by surprise with its sudden moves.

November was a month of major changes for the global crypto market, with the decline in FTX leaving skeptics and crypto enthusiasts confused about the future of the sector.

The global crypto market cap fell as low as $730 but managed to make a slight recovery from the multi-month lows seen in November. Last month saw Bitcoin (BTC), Ethereum (ETH), and most altcoins fall to their multi-month lows as the FTX puzzle spelled trouble for crypto holders.

However, short-term gains are enticing investors to return to the market. Crypto market advocates believed that BTC and altcoins were actually available at Black Friday discounts, with prices that low.

However, the high volatility in the market and the sharp movement in prices have challenged analysts’ predictions of a bright future. Furthermore, regulatory concerns loomed large over the global crypto landscape as participants speculated on the fate of FTX founder Sam Bankman-Fried.

So, here are some big realistic crypto predictions for December 2022.

crypto price forecast

While bitcoin price tested the multi-month low around $15,000 and is still in a major bearish trendline, a lot of analysts believe that bitcoin price has bottomed out. An analyst at CryptoQuant said that the price of BTC will not fall below the $15,000 mark.

The analyst advocated that a BTC dead cross was coming soon and that the price of bitcoin was nearing the bottom. According to the thesis of analysts, when the short-term dominance of Bitcoin UTXO falls below the long-term dominance, the price of bitcoin shows a significant increase.

BTC UTXO Age Band |  Source: Cryptoquant
BTC UTXO Age Band | Source: Cryptoquant

Based on the prediction on the Bitcoin UTXO age band, the analyst said that a dead cross is coming soon and BTC price has bottomed out.

Another analyst on Twitter named CryptoKaleo predicted that the price of LTC could make some explosive moves before the end of this year. The analyst noted that the LTC/BTC chart appears to be long overdue for a solid pump.

The analyst further said that the price of LTC is acting in a manner where it is slowly drifting downwards over a long period of time. This was followed by a quick pump up to 0.02 BTC when the global crypto market continued to be bearish.

Analyst RektCapital cautions crypto traders against altcoins. He added that many altcoins are turning old supports into new resistances. RektCapital further added that it is better to remain cautious until altcoins are able to reclaim these recently lost levels.

Will SBF end up in jail?

One issue that rocked the global crypto market was Sam Bankman-Fried (SBF) and its downed exchange FTX, which led to a massive market selloff. SBF and FTX not only impacted the global crypto market cap, but also traditional finance fanatics’ view of the crypto market.

With skepticism about cryptocurrencies on the table once again, the mainstream media weighed in on the prospect of SBF going to jail. A Fortune article argued that SBF may be safe from jail because FTX is an offshore business headquartered in the Bahamas.

Since FTX did not cater to the Americans, defense attorneys could argue that the actions of its officials were beyond the reach of the US, which means it was also beyond the reach of the US DOJ and the US SEC.

Another attorney claimed that SBF’s behavior and FTX’s business practices demonstrated fraud; Thus, SBF may have to spend some time in jail. However, given the state of Do Kwon and Terra, it looks like FTX head SBF could get some major penalties, but jail time is unlikely.

Regulatory Predictions for December

This year saw a decline in two major crypto projects – Terra and FTX. This has raised some concerns among regulators. Sir John Cunliffe, deputy governor of the Bank of England, is considering the rules. He added that after the collapse of FTX, the crypto sector may need more oversight.

Furthermore, the Belgian Financial Regulatory Authority recently stated that they do not consider BTC and ETH to be securities. The Belgian Financial Services and Markets Authority (FSMA) has clarified in a recent report which indicates that the cryptocurrency sector may become more regulated going forward.

Thus, amid an uncertain macroeconomic environment, cryptocurrencies may face further conflicts and regulations.

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