What Is The Outlook for Crypto In 2022?

    The cryptocurrency sphere suffered a harsh blow in the beginning of 2022. Bitcoin plummeted more than 14% in the first week of January, intensifying the skepticism associated with anything crypto. Other major coins also showed disappointing figures, including Ethereum and Ripple which fell around 13% and 9%, respectively.

    The massive crash was a reaction to the Fed Reserve’s announcement of cutting off the support from the economy and hiking interest rates earlier than decided. This was not the first enormous sell-off and will probably not be the last. 

    Uncertainty and volatility have remained the core feature of the crypto domain, driving prices to unprecedented highs and lows within short durations.

    A turbulent year for crypto space – 2021

    The year 2021 has been a bumpy ride for cryptocurrency enthusiasts. The crypto space faced a significant boom with the adoption of Bitcoin as a legal currency by El Salvador. In addition, major brands and retailers adopted cryptocurrencies as their payment methods.

    Moreover, the first-ever Bitcoin-futures ETF was introduced with the SEC’s approval, which created optimistic hopes of future regulation and adoption of cryptocurrencies. 

    Amidst the optimistic outlooks, Bitcoin reached an all-time high of $68,000 in November 2021; however, the coin has been under a bearish spell since then. The red crypto market is partly the result of China’s crackdown on crypto miners and Kazakhstan’s internet shutdown, a power player in Bitcoin mining.

    Crypto coins next to a court hammer

    Photo by Kanchanara 

    Where can the crypto wave head in 2022?

    Future government policies, regulations, and crackdowns will play a central role in determining the trajectory of crypto markets in the coming years. 

    Despite the whispers of a potential crypto winter, most analysts are hopeful about Bitcoin’s price hitting the $100,000 mark by the end of 2022. The digital coins’ prices may face short-term crashes but are expected to increase in the long term. 

    However, some professionals expect dormancy in the crypto arena during 2022, with only the most stable coins surviving the cool-down period. The prevalence of sustainable Bitcoin mining and the adoption of crypto as a transactional form of currency are some of the deciding factors for its future valuation.

    Amidst all of this uncertainty, investors and traders are searching for answers – or at least for advice. The internet, it seems, was quick to respond, but how can you know that you are getting accurate information? 

    Webacademyst is an online educational service offering courses and valuable information about the working of cryptocurrencies and relative strategies. According to experts from the brand, the only way to know whether the information online is credible or not, is to be aware of who provides it. Blogs written by crypto enthusiasts, for example, or online courses constructed by people with experience with crypto, can be a good place to start.

    Cryptocurrency investing is not for the faint-hearted 

    It is undeniable that cryptocurrency markets are significantly volatile and aggressive. You can see a decline of more than 50% in a matter of days but can also witness explosive gains in the same amount of time. 

    The crypto sphere is extremely sensitive to significant events, news, and statements of famous personalities. Earlier in 2021, Elon Musk gave a puff to Dogecoin that quickly subsided, and John Dorsey predicted the replacement of USD with Bitcoin which in turn skyrocketed the coin’s price. 

    To predict the exact direction of future crypto markets is as impossible as predicting the side of a coin’s landing after tossing it. The critical point is to remain patient, steady, and engage with cryptocurrencies only after proper research from reputable platforms like Webacademyst. 

    Photo by Kanchanara

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