Here are the top 5 crypto predictions to look out for in 2022.
The crypto market has witnessed a rather massive correction in the first half of 2022. The prolonged bear market has the global cryptocurrency market cap teetering around $1 trillion from its $3 trillion high in November 2021. Heightened inflation, weak cues, and hikes in interest rates have thrown away the predictions made by crypto experts at the beginning of the year. Investors and traders are now awaiting the next projections by experts. Against this backdrop, we have compiled the top 5 crypto predictions for the second half of 2022.
The Industry Will Stay Volatile
Volatility is an inherent factor in the crypto market and this cannot be ignored. Experts believe that inflation will persist in the market for the coming two years, and the imminent economic recession might continue. This might make the crypto market again fragile and volatile. Therefore, investors must be all prepped for any bear market scenarios in the coming years.
Volatility will continue to persist in the crypto market throughout the year. However, people’s interest in crypto remains high, and it has positioned itself as a potential investment option among investors. Therefore, the current winter spell will certainly wear off, even though it's difficult to predict accurately when the next bull run will start.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Adoption Of Cryptocurrency Would Increase
Experts’ crypto prediction for the second half of 2022 says that despite these volatilities, mainstream companies across verticals will continue to adopt cryptocurrencies in the coming years. Several institutions have taken interest and invested themselves in cryptocurrency and blockchain in 2021. Companies like AMC, Fintech corporations like PayPal and Square, and corporate giants like Tesla have already started accepting cryptos as a payment mode and have been holding billions in crypto assets.
Predictions say that global corporations would re-boost the adoption even more in the latter half of 2022 as institutions like Amazon and big banks are now getting involved in crypto. This increased institutional adoption would bring in new use-cases for everyday users, which will greatly impact crypto prices.
The Market Is Within An Ace Of Another Set Of Crypto Regulations
Cryptocurrency regulation is expected to be a crucial issue in the second half of 2022, as per experts. The Vice president of corporate development and global expansion at crypto exchange Luno, Vijay Ayyar, predicts that 2022 will be a big year on the regulatory front for cryptocurrencies.
Regulators are especially interested in stablecoins, tokens whose value is pegged to the price of assets such as the U.S. dollar. Following the recent Terra Luna crash, U.S officials have also shown a specific interest in stablecoin regulation.
The first comprehensive regulation around crypto assets was the European Parliament’s Markets in Crypto Assets Law, unveiled late last month. However, several industry heads in the crypto space are expecting some kind of government intervention that would help them function more freely in the future. Therefore, according to crypto predictions, it is definite that the market will see regulation coming in the second half of 2022.
However, in the right balance, more regulation means more stability in this highly volatile crypto market. In addition, regulations would help long-term investors to prevent any fraudulent activity within the crypto ecosystem and facilitate crystal clear guidance that will help companies adapt themselves to the crypto economy.
NFTs Will Be Popularized By Pop Culture
NFTs or non-fungible tokens have left a major mark in the market, be it in games, movies, music, movies, or art. As a result, almost a million accounts were actively buying and selling NFTs over the past few years.
When memes like “Grumpy Cat” and “Nyan Cat” were sold for almost $83,000 and $600,000, the Pop culture status of NFTs rose to new highs. Despite some people's initial thoughts of it as a fad, the whole NFT community has been able to maintain its position despite the challenges of the virtual world.
However, the hype and the novelty of NFTs have been somewhat dulled down in 2022. The bear market has also made it challenging for people to get too excited about new collections. Many industry experts have voiced their predictions for the NFT market for the second half of 2022. The underlying belief is that the core technology of NFTs would be the real survivor in the long run.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Investors Can Expect More Plunges
The last crypto prediction for the second half of 2022 is that investors should be well prepared for another major crash in the coming months. Before the market begins its bull run again, the current market scenarios point to this big crash. Therefore, those looking to diversify their portfolio or novice investors taking baby steps in this market need to be aware of the risks and fluctuations to minimize any loss.
A Final Word
These are the 5 crypto predictions for the second half of 2022. Assumptions can be made on what would happen next in the crypto sphere, but in reality, crypto is still a new and speculative investment class. Therefore, it is always suggested to keep your investments small, considering your risk appetite.
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