2022: Is it a good year for crypto market?
The phenomenal performance of the cryptocurrency in the past year has resulted in everyone having a great expectations from Bitcoin and altcoins to reach an even higher value in the coming days. To predict the future for all types of cryptocurrencies is however not easy, due to it still being a comparatively new commodity and also because of its high volatile nature, visit: https://bwcevent.com/reviews/bitiq-review/ .
The term cryptocurrency is now a household name and the fantastic run that it has had in the last few years has encouraged an increasing number of investors. Both established investors and first-timers who have had no prior investing experience are making their foray into the world of crypto trading.
With not much data to fall back on, with cryptocurrency being a fairly new entity, all future predictions are just estimates, that financial experts feel will happen to cryptocurrency based on its recent performance trends. Following are a few future predictions for the cryptocurrency based on what finance and crypto experts had to say:
Hope for the best but be prepared for the worst
There are conflicting views regarding the performance of Bitcoin in 2022. While some experts feel that it may ride on the high from last year’s record-breaking performance and reach the coveted USD $100,000 in the first quarter of 2022 itself, there are others who expect it to reach the magical number of USD $100,000 only towards the end of 2023. There are also some trade experts who believe that this year may end with Bitcoin prices staying within the USD $70,000 mark. These are the positive predictions related to Bitcoin.
Some expect the Bitcoin to crash to a value as low as $ 10,000 this year. If that happens, whatever gains bitcoin has achieved in the last eighteen months will be wiped out.
With such diverse predictions regarding the performance of the cryptocurrency abounding in the crypto market, it is rather difficult to say which way the value of the cryptocurrency will swing, an upsurge that will infuse fresh hope for the investors or a crash that will bring about a pall of gloom in the crypto arena.
Influx of investors in the crypto market
The availability of avenues that enable people to trade in cryptocurrency and a better understanding of the concept of digital currency has already seen a tremendous increase in the number of people willing to trade in cryptocurrency. Crypto trading platforms have made it possible for more and more people to join in. Bitcoin Era is one such reliable option being widely used by traders and investors.
Introduction of cryptocurrency regulations
Lawmakers across the globe are attempting to formulate a framework of laws and guidelines that protect the interests of investors and try to keep cybercriminals away. Though there still are a lot of grey areas regarding the type and scope of regulations, everyone agrees that proper regulation will induce more confidence in people to invest and finally win it. In fact, U.S officials have shown a keen interest in the regulation of stablecoins too.
An increase in the NFT sales volumes has helped Ether perform better than Bitcoin in 2021 as most of these non-fungible tokens operate on the Ethereum blockchain. Ether gained 418% against 66% gain for Bitcoin.
- USD Coin will emerge as the strongest stablecoin
It might get replaced by USD COIN soon; however, it really got large fanbase for quite some time.
- Most meme coins will cease to exist
Except for dogecoin, meme coins like Shiba Inu and Squid have already or will disappear soon.
The approval of the first spot Bitcoin exchange-traded fund (ETF) and DeFi to be one of the highest growth zones of the crypto market are some of the other predictions made by crypto experts for 2022.
As seen above, the prediction about the performance of cryptocurrency in the future is extremely varied. Whatever may be the value of Bitcoin, whether it achieves the $ 100,000 value, all that remains to be seen but one thing is for sure, cryptocurrency is here to stay. It may have its plunges and surges but it has firmly established itself as an alternative to fiat currency.