Bitcoin has risen between 7% and 36% in the first week of January every year since 2018

Some crypto market analysts are highlighting the possibility of gains in crypto markets in the first week of January, part of what economist and trader Alex Krüger calls the "first week of the year effect."

In a Dec. 29 tweet, Krüger noted that between 2018 and 2021, Bitcoin has seen positive returns of between 7% and 36% in the first week of January for four consecutive years.

In the first week of January 2021, Bitcoin rose from $28,653 to $41,441.

Still expect a strong rally in crypto markets in early January, fueled by inflows. If the next inflation data comes out (January 12th), then risk aversion until the next FOMC meeting (January 26th).

— Alex Krüger (@krugermacro) December 28, 2021

Krüger's optimism for early January comes from his expectations of strong "fund inflows", which appear to echo Real Vision CEO Raoul Pal's views. In an interview with Youtube on Dec. 27, Pal said he believes the sell-off in Bitcoin is over and that January will be off to a strong start as institutional capital reinvests in the market.

ExoAlpha CEO David Lifchitz believes that in order to lock in tax losses, even with less than 24 hours left in 2021, institutions are still selling. The rebound in the first week of January may have something to do with this phenomenon.

Nigel Green, chief executive of fintech and wealth management firm deVere Group, sees December as bitcoin's worst monthly performance since May 2021, due to what he calls "panic sellers who nearly gave away their crypto to investors." wealthy buyers".

However, he is long-term bullish on the largest cryptocurrency by market cap. Green believes that Bitcoin can protect investors from the impact of global inflation, "Borderless, global, decentralized currency is the future trend."

However, not everyone is bullish on the crypto market in 2022.

Carol Alexander, a finance professor at the University of Sussex, told CNBC that Bitcoin could drop to $10,000 in 2022. However, she is a skeptic who believes that BTC has no fundamental value and that it has reached its peak for this cycle.

Todd Lowenstein, chief equity strategist at Union Bank, offered a more educated view. He believes that the "golden conditions" such as the new crown virus financial stimulus package and low interest rates that are conducive to high asset prices are coming to an end, which will have a significant negative impact on Bitcoin and traditional markets in 2022.

"Gold conditions are ending and the wave of liquidity is ebbing, which will disproportionately hurt overvalued asset classes and speculative areas of the market, including cryptocurrencies."

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