Indeed, cryptocurrency is among the most volatile space on the globe. That way, it may be challenging to predict what 2022 might have for the market. However, this content attempts to explore top trends this year and their potential impact on the market.
One of the trends for the crypto market in 2022 can be increased government regulation. There are more than 200 bills crypto-related bills that global legislatures consider. Furthermore, nations like Japan and South Korea have introduced stiffer crypto policies because of tax evasion issues and money laundering.
Stricter regulations for crypto exchanges might discourage many individuals from selling coins on exchanges or participating in ICOs. That will lead to less activity in the marketplace (less demand).
Top Blockchain Breakthroughs
Many countries globally will use BTC and ETH as primary payment options. That way, governments, including crypto opposes, will see their advantages over traditional money for businesses and citizens alike.
For instance, Japan appears ready to authorize Bitcoin as the official currency with the new law. Such a trend might spread across Asia quickly, the region that had led crypto trading volume ever since.
Dropping BTC prices
Bitcoin has seen its price plunging over the last few months, and the trend might continue. That can be because of various reasons, including unstable interest in BTC as a payment option, increasing crypto regulations, and global economic instability.
Though the challenges, experts expect Bitcoin to dominate the crypto world throughout 2022. Other assets like Litecoin and Ethereum might witness popularity gains as Bitcoin battles, but they would not surpass BTC’s market share.
- Increased Government Interest
G20 countries are planning to formulate standards for crypto regulation. Though they might delay full implementation, there’s a high probability they will change the crypto regulation approach. Moreover, positive government interest in crypto will support bullishness in the crypto space.
Indeed, blockchain witnesses increased popularity, and market players await a lot in 2022. Though assets such as Bitcoin and Ethereum may see decreased favoritism, other tokens might experience value increase based on their utility. Nevertheless, the technology has proven lucrative for most non-crypto deals (like logistics), which might ensure trust in this growing industry.