- Date : 01/08/2022
- Read: 3 mins
When it comes to crypto, various predictions are devising its future of it. The popularity of cryptocurrency sustained in the year 2021. In October, the first exchange-traded fund was introduced and linked to Bitcoin, whereas in April 2021, Coinbase was launched. 2022 will be more spectacular by submitting a retreat of NFT- mania and Ethereum 2.0.
Prediction 1- Ready for the exciting climb or Crypto Crash?
The prices of cryptocurrency are expected to fall further in the year 2022. By a Sussex University professor Carol Alexander, Bitcoin is likely to drop to a low of $10,000 in 2022. It will eliminate most of its benefits in the previous year and a half. The prices are now below $50,000, which was in November almost $69,000, considering this leap as down around 30 % from its high.
Some don't see a crash in the year 2022. Fed is believed as the most crucial risk factor by an analyst of the crypto market at Bitbank of Japanese digital exchange, Yuya Hasegawa.
More considerable demand for Bitcoin ETFs and their substantial acceptance by businesses is one of the factors pointing to the higher Bitcoin prices, as reported by analyst Sayantani Sanyal. Some say that Bitcoin could hit USD$100,000 in the first quarter of 2022, while Sanyal predicts this hit by the end of 2023. Bitcoin will not be able to hit the end of 2022 more than USD$70,000 indicated by others.
Also read this Expert article on Can Bitcoin replace Gold as the new safe investment haven?
Prediction 2- Regulators observe cryptocurrency
The main issue in the year 2022 is anticipated to be cryptocurrency regulation. The year 2022 will be a big year on the regulatory face, as predicted by the vice president of corporate development and global expansion, Vijay Ayyar. He expects to notice some elucidation in the area other than Ethereum and Bitcoin but on the legal grey zone of cryptocurrency, told CNBC. The world's most giant stablecoin, Tether, is debatable whether it has sufficient assets in its reserves or not to explain being attached to the dollar.
Prediction 3 – Withdrawal of most of the meme coins
In the previous year, Shiba Inu's spinoff of Dogecoin reached 44,540,000%. A currency named after the television series Squid Game "Squid" leapt over 75,000% in less than a week to vanish quickly.
Prediction 4- The S&P will either surpass or defeat Bitcoin
Bitcoin and the benchmark index both indicated magnificent gains in the year 2021, even during the global economic threat of coronavirus. S&P reached almost 275 while Bitcoin around 66%. According to Arcane Research, Bitcoin has presented a performance similar to a risk-on asset, and they also expect that it will inflate the stock market behaviour. Bitcoin will surpass if the stock market grows in 2022, while it will underperform if there is a red year in the stock market, said the firm.
By looking at the future of cryptocurrency, there are many predictions made all over the world. Even during the global economic threat of coronavirus, cryptocurrency continued to maintain its popularity. The year 2022 will also witness probably many predictions in favour of cryptocurrency. Learn the art of investing from experts, register to receive our Premium articles directly into your inbox.
This article is meant for general financial purposes only. You must not take it as any form of legal or taxation or investment or insurance advice. You must seek separate independent advice when indulging in financial decision-making.