Sunday, May 28

Will Bitcoin remain among the most demanded cryptocurrencies in 2022?

Bitcoin appeared in the financial world in 2009 and is the first known cryptocurrency. Since its inception, it has remained the main cryptocurrency and today represents more than 40% of the total capitalization of digital currencies.

It is an extremely volatile financial asset, but its adoption has increased substantially in the last five years, mainly by ordinary citizens and to a lesser extent by institutional sectors. Although Bitcoin is now at the height of its popularity, other more traditional and common payment methods are still in demand and popular. This is supported by a number of industries.

For example, in the casino industry, a sector that is up to date in terms of payment methods, it is still the most common to make deposits and withdrawals when you want play live rouletteFor example, are credit and debit cards. This despite the fact that many casinos accept almost any payment option that is legal.

Bitcoin kicked off 2021 with a huge rally, hitting all-time highs every month between January and April. April 14th peaked of $64,373. The CEO of Tesla was one of the promoters of the price of this cryptocurrency with a series of tweets in his personal account, including one that assured that the electric car company would accept bitcoin as a form of payment.

After April 15, what would be the strongest fall of the year began, which would take the price of Bitcoin to a minimum of $23,158 on July 19. In this adjustment, the measures of absolute prohibition of cryptocurrencies in China weighed heavily, but Musk also backed down from his initial position and announced that he would no longer accept the payment of electric cars with cryptocurrencies.

But Bitcoin gained momentum again when El Salvador accepted the title of the first country to adopt cryptocurrency as a legal means of payment. Bitcoin started to rise and reached a new high on September 5 at $52,633.

There was a further pullback from there, but only to start rising again when the first Wall Street-traded bitcoin futures fund (ETF) went public. The price of BTC climbed to a high of $68,500 on November 9, but only to fall, this time faster and close the year at $46,903, 62% more than the end of 2020.

Reasons for the demand for Bitcoin to continue in 2022

Cryptocurrencies are very volatile assets and those who invest in them know it. Last year many analysts estimated that the price of the first cryptocurrency could exceed $100,000, but this did not happen. But there were important events that boosted the demand for this cryptocurrency, although there were also headwinds, mainly from China.

The following are important events that boosted the demand for Bitcoin last year and that it is estimated that they could continue to weigh this year, so that the price of BTC returns to its upward trend:

  • Bitcoin gained momentum again as El Salvador accepted the title of the first country to adopt cryptocurrency as a legal means of payment. On September 7, the Bitcoin Law was approved, which gives this support to BTC.
  • The United States Securities and Exchange Commission approved the first publicly traded Bitcoin futures fund (ETF). It is the ProShares fund, with which the presence of cryptocurrencies on Wall Street began.
  • NTFs (non-fungible tokens) are increasingly present in the art world. In 2021 this market was valued at $22 billion as digital images such as avatars from The Matrix became important digital assets.

Some important analysts have ventured to make projections of the behavior of Bitcoin for this year. In a private report to clients, JP Morgan said that alternative assets, including cryptocurrencies, “should continue to perform phenomenally in 2022.” From Bloomberg Intelligence, analyst Mike McGlone estimates that the United States could adopt cryptocurrencies this year with the right regulation and this would imply a price rebound.