Monday, July 15, 2024
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Bitcoin: What Investors Need to Watch Out for in the Crypto Market in 2022

Bitcoin and most large-cap cryptocurrencies are off to a weak start in 2022: The expected bull run at the end of the year has failed to materialize, and the markets are largely trading sideways.

BTC, for example, was down 3.35% over the last seven days. Ethereum, on the other hand, the second-ranked cryptocurrency by market capitalization, has been below £4,000 again since Dec. 28. Losses also for Binance Coin (BNB, -4.5%), Solana (SOL, -4.3%) and Cardano (ADA, -5%). 

The mood on the markets: worrying. Many investors expect the next crash. The much-cited “Fear & Greed Index”, an indicator of sentiment among investors, is currently at “extreme fear”.

But is this justified? Is the next crash really looming? How do experts expect things to develop, and what can investors expect in the coming months?

Will Bitcoin Crash Again?

First, let’s look at the most important cryptocurrency, Bitcoin. Traders and chart experts are currently holding back on price forecasts – the short-term trend seems too unclear. 

More and more investors are withdrawing their Bitcoins from the exchanges and storing them. This is generally considered a good sign, also in perspective for the further price trend in 2022.

It shows: Investors are holding on to their coins – instead of selling. There are currently 25% fewer Bitcoins on the exchanges than two years ago. Even apart from that, nothing has changed in Bitcoin’s fundamentally bullish macro situation. 

Banks and major institutions are pushing towards BTC, and adaptation is progressing in leaps and bounds. A development that will possibly accelerate in 2022. 

According to experts, the crypto industry will experience significantly stronger regulation in 2022 – and that, in turn, will enable large investment banks and pension funds to enter the industry. 

All major banks have their eye on the sector. Many of them have started their activities in this area, but it’s slow and takes time. Therefore, a lot will happen in the crypto industry in 2022 – especially because of the new regulatory framework.

Ethereum Will Become Ethereum 2.0

One cryptocurrency that should gain strong momentum similar to Bitcoin or the most beloved UK casino slots is Ethereum. The background: in the next few months, ETH will reach a significant milestone. 

The leading smart contract platform is completing the much-anticipated upgrade to “ETH 2.0.” Along with this, the famous blockchain from Ethereum will move from the previous model known as the proof-of-work consensus model (PoW, known from Bitcoin) to a proof-of-stake model (PoS). 

This should not only make Ethereum faster but also significantly cheaper. Analysts expect strong interest from the media and the public in this regard. Aspects that could fuel a new bull run.

Metaverse Coins: Is an Investment Worthwhile?

The so-called metaverse also has massive growth opportunities in 2022 and beyond. The term was hardly a household name until recently – then Mark Zuckerberg unceremoniously renamed Facebook to Meta and promised to invest billions of dollars in building such a virtual world. 

This put numerous metaverse projects on investors’ radar and caused a boom in related coins. Assets such as Decentraland (MANA) or The Sandbox (SAND) appreciated thousands of percent within the last year. It may be assumed that metaverse cryptocurrencies will also be successful this year.

However, the development of the new field needs time. Everything will initially cool down a bit in the next few months – unless big names suddenly push into this area.

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