Bitcoin orgy has come to an end? Experts: It will fall to $10,000 in 2022

A common reason for investing in bitcoin is that it can serve as a hedge against rising inflation caused by government stimulus, Lowenstein said, adding that the Fed's hawkish stance could weaken the momentum of highly valued assets and bitcoin.

However, not everyone thinks the bitcoin binge will end in 2022. Yuya Hasegawa, a cryptocurrency market analyst at Japanese bitcoin exchange Bitbank, said:

"The biggest risk factor, namely the Fed's quantitative easing, has landed and this may already be reflected in the price."

First Spot Bitcoin ETF

One major development that cryptocurrency investors are watching is the approval of the first spot bitcoin exchange-traded fund (ETF) in the U.S. in 2022.

Although the SEC approved the launch of the ProShares Bitcoin Strategy ETF this year, the product tracks bitcoin futures contracts rather than the cryptocurrency itself.

Vijay Ayyar, vice president for corporate development and global expansion at cryptocurrency exchange Luno, said.