Babel Finance: Bitcoin is expected to reach new highs in 2022

Increased global uncertainty is further fueling mainstream investor interest in cryptocurrencies, which is expected to push Bitcoin prices to new highs (ATH) in 2022. This is the latest outlook on the future prospects of Bitcoin made by Wu Kong, head of global partnerships at Babel Finance, during the 2022 Bitcoin Conference.

One of the impacts of the Ukraine war is to promote cryptocurrencies to further gain the attention of mainstream investors. Whether it is a sovereign wealth fund or a high-net-worth individual investor, they will consider further diversification of traditional assets to diversify risks.

“We are receiving more and more inquiries from investors and clients from traditional backgrounds, who want to consider investing in encrypted assets when diversifying their investment risks through diversification. We expect this demand to continue to drive the price of Bitcoin. All time high," Wukong said.

The further clarification of Asian regulatory policies is also expected to allow more traditional Asian investors to eliminate their concerns about investing in encrypted assets. After Singapore restricted the promotion of encrypted assets to retail investors in November 2021, it has recently passed legislation requiring that cryptocurrency companies that only operate overseas also need to obtain a license.

"We believe that these policies continue the consistent position of Singapore regulators, that is, while putting investor protection first, gradually establish a reasonable regulatory system for cryptocurrency companies, rather than completely prohibiting and restricting them. These regulatory frameworks are constantly being improved. Let Cryptocurrency companies that adapt will have better opportunities for development," Wukong said.

Hong Kong-based Babel Finance was established in 2018 and has gradually expanded from a cryptocurrency lending business to providing services such as encrypted asset management. As of the end of 2021, Babel Finance has a loan balance of US$3 billion and is one of the largest encrypted financial service institutions in Asia.