Over the years, cryptocurrency has become very popular and has caught the interest and attention of millions of individuals and firms. Since the development of Bitcoin, the very first cryptocurrency, more and more cryptocurrencies have started to emerge, which has led to the widespread acceptance of cryptocurrency in the different sectors of the business industries. Despite its popularity, there’s no denying that cryptocurrency has a highly volatile nature and has caused some chaos in the crypto-verse due to certain cryptos declining in value. Over the past months, red charts and down arrows dominated the cryptocurrency field, where crypto values started to fall. These events led to wonders and questions about the end of cryptocurrency – so read on to know what experts predict about cryptocurrency this 2022.
Cryptocurrency & Its Volatility
The cryptocurrency market is widely known for its highly volatile nature. This means the values or prices of digital coins change suddenly from time to time. Due to this, crypto enthusiasts must understand the risks involved. Trading and investing in the field require proper planning and knowledge. With the right approach, you can make wise decisions and avoid wasting a large amount of money.
Since the market is fluctuating, earning profits one day does not guarantee constant or higher earnings for the next days – not to mention the number of losses caused by crypto scams and hacking online. Due to these, some traders ensure a secure and effective trading experience by engaging in some of the most trusted platforms:
Cryptocurrency trading requires proper knowledge and skills – it’s not just about investing and leaving everything to luck and fate. While there are people who were skilled enough to make it to the list of cryptocurrency billionaires, it’s no guarantee that everyone who made investments in the field will have the same fate.
Experts’ Crypto Prediction 2022
Over the past few months, the cryptocurrency market has been dominated by a decline in prices. Many crypto enthusiasts are curious if this is an indicator that crypto is nearing its end. Read on to know the predictions of crypto experts regarding cryptocurrency’s fate this year 2022.
1. Crypto Crash or Sign of Increase?
Due to the recent events in the market, some experts believe by looking at the crypto price charts that cryptocurrency prices could fall even more in 2022. Cryptocurrencies were expected to reach a record high of almost $69,000 in November. However, experts predict that they are now below $50,000. This represents a 30% decline. One expert and professor, Carol Alexander, predicts that Bitcoin could go low to $10,000 in 2022 which would put to void all its gains in the past years.
2. Is Crypto Regulation Coming?
One of the predicted key issues that will happen in 2022 is cryptocurrency regulation. Vijay Ayyar, the vice president of corporate development and global expansion at crypto exchange Luno, predicts that 2022 will be an iconic year on the regulatory side. He predicts to see some clarification on the legal regulation zone of cryptos aside from Bitcoin and Ethereum, but with stablecoins as well.
3. Ether Will Outperform Bitcoin
Many experts predicted that the altcoin Ethereum will outperform Bitcoin in 2022 again. This cryptocurrency already outperformed Bitcoin in 2021, earning 418% compared to Bitcoin’s 66%. Analysts believe that Ethereum will continue to do well because of the surge and popularity in NFT or non-fungible tokens sales volumes. This is because most of these tokens run on the Ethereum blockchain.
4. Meme Coins Will Disappear
Over the years, meme coins started to emerge. One of them was Dogecoin. It became even more popular when Elon Musk publicly supported the crypto. Last year, this cryptocurrency skyrocketed to 44,540,000%. While the Squid coin, a coin named and inspired by the Netflix film ‘Squid Game’ reached more than 75,000% in less than a week but disappeared immediately. Experts predict that these meme coins, while not all of them, will disappear this year.
5. The First Bitcoin ETF Could Get Approved
Some experts believe the first spot Bitcoin exchange-traded fund (ETF) could be approved this year. They think this could happen in the United States. This would give investors direct exposure to the cryptocurrency itself. In 2021, the SEC, or Securities and Exchange Commission, allowed the launch of ProShares’ Bitcoin Strategy ETF. However, its function was only to track Bitcoin’s future contracts. Experts now believe that the market is large and mature enough to support a Bitcoin Spot ETF. Therefore, they think it could be approved soon.
Is It The End Of Cryptocurrency?
Cryptocurrency has indeed had a tough six months and the downward is continuing. For many investors, especially newbies, these drops in prices are extremely worrying. However, experts believe that it is not the end of cryptocurrency. These falls in prices are a common part of the cryptocurrency nature, and some believe that it could be a signal that an increase in prices will happen anytime soon.
Since cryptocurrency was introduced to the public, millions of people and businesses have engaged in it. Some have even dedicated their whole lives to trading and investing. Over the years, cryptocurrency has gradually gained acceptance. It has been incorporated into different business sectors, making processes efficient and fast. Experts believe it’s hard to put an end to cryptocurrency. Despite the continuous drops in cryptocurrency prices, they think it is not nearing its end.
Conclusion
It’s hard to miss the description ‘volatile nature’ when talking about cryptocurrency. The values in the digital coins of the market are constantly changing to this behavior. Since the development of Bitcoin in 2009, the cryptocurrency field has seen price fluctuations. Some traders and investors look for ways to handle this volatility. They continuously learn new skills to approach the market effectively.
