Top Cryptocurrency Trends to watch out for in 2022
As the year draws to a close, it is worth pointing out that it has been an action-packed year for the cryptocurrency market. The overall market capitalization of the crypto market surpassed the $3 trillion mark. Besides this, Ethereum and other altcoins also experienced dramatic variations. For this reason, it is only fitting to introduce the top cryptocurrency trends to watch out for in 2022. This is exactly what this guide is all about.
As investors grow eager to see what 2022 has in stock for the crypto market, it is expected to be an eventful year in the crypto world. The healthy market trends that defined this year will likely continue in the next year. However, while investors wait to see what 2022 holds for the crypto world, they have been looking to arm themselves with the right tools to effectively carry out crypto trading.
Bitcoin, for example, is seen as a safe haven for investors. There is a common narrative that Bitcoin is similar to Gold. However, like other cryptocurrencies, there is a high level of risks associated with Bitcoin. This has contributed to the hype around it. Almost all Bitcoin corrections in 2021 correlate with an S&P trading correction of at least -2%. Even though a high level of risk is associated with crypto investment, cryptocurrency has generated so much hype and recognition among investors.
The availability of several crypto exchanges, including PrimeXBT, will likely lead to a huge growth in the crypto industry, as well as an increase in the number of participants. Several trends will be experienced by enthusiasts and investors across the crypto world. Some of these are introduced as follows
Crypto regulations to remain in focus
All through the entirety of 2021, several regulators took their time to estimate the effect of cryptocurrencies on the economy. There were warnings from the central banks of several countries, including India, against the financial instability that can be caused by cryptos. From China’s complete ban of all cryptocurrency-related activities within the nation to El Salvador’s adoption of bitcoin, 2021 saw a lot of regulatory actions taken by several institutions. This will most likely remain the case. As cryptocurrencies keep gathering attention across the far reaches of the globe, governments of several countries are wary of its impact and its uncontrollable nature.
Institutional investments in crypto markets likely to rise
Top financial organizations and companies have invested big in the crypto industry this year. According to reports, big investors poured in about $30 billion into the industry in 2021. This trend will likely remain constant as more institutional investors are hoping to make more investments in currencies that many dub as the “currencies for the future”. With world-class companies, including Microsoft, Nike, Adidas, Facebook, among others, making an entry into the space, the industry is expected to witness more investments in next year. As Banks also feel the power of cryptocurrencies, they are also more likely to provide support to the burgeoning crypto market. Investors are granted cryptocurrency-backed loan products, which are being rolled out by big banks like Goldman Sachs.
Bitcoin likely to remain in the spotlight
The growth and ever-growing adoption of Bitcoin have cast this cryptocurrency in a flattering light. This digital currency is expected to end the year at just under $50,000. However, this is right after it made an all-time high of almost $70,000 in November. It had begun the year at just around $29,000. Yet, with the massive gain it experienced this year, many investors believe this trend will remain the same and Bitcoin will stay in the spotlight in the year 2022. According to a professor of finance at Sussex University, Carol Alexander, Bitcoin “has no fundamental value”. As a result, she believes its value should fall as low as $10,000. However, several experts believe that as Bitcoin keeps gaining recognition, its value could hit the $100,000 mark. Of course, this growing popularity will also likely attract illicit intentions. To secure your funds, trading with top platforms, including PrimeXBT, is essential. At PrimeXBT, not only is trading easier to carry out but users are also exposed to several security tools and features such as Two-factor authentication (2FA).
NFT market growth likely to continue
Non-Fungible Tokens have ensured that creators and artists can gain access to decentralized funding options. For this reason, they have more freedom when it comes to financing their creation. Non-Fungible Tokens are based on Blockchain technology and this has made them secure, as well as being able to verify the ownership of the digital assets. Due to these upsides, it has gathered attention among creators and artists. For this reason, the crypto market should expect a rise in the valuation of the NFT market.
