Everyone in the crypto community recognizes that crypto predictions are rarely correct, however, that does not eliminate the fact that humans like to reduce uncertainty and, precisely because of this, experts try to predict what could happen to the crypto market. in 2022. We tell you!
What to expect for the crypto market in 2022?
2021 has been a fantastic year for the crypto market. Yes, even when most cryptocurrencies are currently facing a price correction. In fact, it’s worth remembering that on January 1, 2021, the price of Bitcoin was $ 32,127, according to CoinMarketCap. And, currently, it is above $ 47,000. So, wasn’t it a great year?
But, beyond price action, even more important for the crypto market has been the adoption and recognition that it has acquired around the world. So much so that this year the SEC was able to give the green light to Bitcoin ETFs and Coinbase, a crypto exchange, began trading on the United States Stock Exchange.
The question is: will 2022 be able to surpass 2021 in terms of adoption and maturity? According to Nasdaq, experts believe that it will be possible. Here 5 crypto predictions for 2022 presented by Nasdaq.
Adoption will continue to increase
Certainly in 2021 the crypto community grew, especially as traditional financial assets did not meet the expectation of investors to preserve or increase their capital.
However, this is not to say that investors lost all doubt or skepticism regarding the crypto market. And it is precisely for this reason that, according to Nasdaq, financial advisers have not recommended investing in cryptocurrencies, even if they are considered pro-crypto. And the reason lies in the absence of a clear regulatory and compliance framework.
Interestingly, in 2021 the Financial Planning Association (FPA) reported that its survey showed that almost half of financial advisers assured that their clients have asked about cryptocurrencies in the last six months. Consider that, in 2020, this figure was barely 17%, according to Nasdaq.
In this way, it is expected that in 2022, as crypto regulation and the market in general mature, financial advisers will have to make the leap and, with them, all their clients. Nonetheless, more major retailers such as Amazon and Walmart are also expected to join the crypto community.
Regulation will be key in 2022
As can be seen, the previous prediction is closely linked to the regulation of the crypto market. In CryptoTendency, it has been highlighted on multiple occasions that proper regulation and, therefore, that it does not suffocate the crypto market, is essential for its growth.
In this regard, Nasdaq assures that experts expect that in 2022 a new batch of regulations and compliance actions will be seen. The thing is, according to Patrick Haggerty, director of Klaros Group, these actions are most likely to generate frustration in the crypto community, but that, in the end, they will be beneficial.
Women will begin to gain greater dominance in the crypto market
According to Nasdaq, Franck Kengne, Gemini’s product manager, told Money that the profile of the crypto investor in 2022 will evolve significantly.
Currently, according to 2021 American Crypto Report At Gemini, only 26% of crypto holders are women. So what could change in 2022? Well, it turns out that almost two-thirds of adults in the United States are crypto curious, that is, they do not own cryptocurrencies, but it generates curiosity. And, of that, 53% are women.
So according to Nasdaq, experts expect crypto curious to take action as established companies like PayPal or Microsoft join the crypto market. And with it, more women are expected to join the market.
Goodbye to the crypto bubble?
In general, when the crypto market has experienced a significant bull run, the debate about whether or not cryptocurrencies have intrinsic value is reignited. And thus there are the experts who believe that crypto will not be the future of finance.
In this sense, according to Nasdaq, Robert Johnson, professor of finance at the Heider College of Business at Creighton University, assures that the fever for cryptocurrencies will begin to deflate in 2022.
According to Johnson, next year will be characterized by a tightening of federal policy by the FED, which will especially affect speculative markets. And, for Johnson, the crypto market is a speculative market.
Other predictions for 2022
Considering that predicting the crypto market can be a difficult task, it is always important to keep other perspectives in mind. In this case, recently Blockchain data research firm Arcane Research, public a report where he offered his crypto predictions for 2022 and they are as follows:
- Bitcoin will manage to surpass, once again, the S&P 500.
- Ripple (XRP) and Cardano (ADA) will not be able to stay in the Top 10 cryptos by market capitalization This based on the growth of altcoins such as Solana (SOL) and Terra (LUNA), along with the boom of NFTs .
- Ethereum (ETH) will be overtaken by other layer-1 Blockchains.
- Video game companies will continue to seize the world of NFTs.
- The number of crypto companies going public will increase.
- By the end of 2022, Bitcoin ETFs will occupy more than 1 million BTC.