We all have seen that the first half of 2022 has been terrible for the crypto market. The leading crypto coins like Bitcoin and Ethereum have faced a severe fall of more than 50%. Unfortunately, no one can predict the future of cryptocurrency, and some analysts have expected more falls before any sustained recovery.
Nothing is predictable in this crypto market because the market is highly volatile and is already recovering.
Popular coins like Bitcoin and Ethereum crashed in the first half, and recovery is not expected in the second half. However, the Bitcoin price is moving around $20,000, but the experts are predicting that the value of Bitcoin will rise to $30,000 in 2023.
Whatever the scene is, people are highly interested in the crypto market, which is possible just because of long-standing investors like Elon Musk.
It is a daunting task to predict where the market will turn around. However, experts still believe that regulations and institutional adoption of crypto payments will give a better sense of the market. Let us know more about the future of cryptocurrency in detail.
The lawmakers in Washington are figuring out the best ways to establish laws and regulations for cryptocurrency. The core objective is to make it safer for investors and less appealing for cybercriminals so that the conversation will continue. These cryptoregulations means to be valuable to acknowledge the future of cryptocurrency.
Recently, US officials have shown some interest in the regulation of crypto, especially when there was a deep fall of Terra Luna. Within a few weeks of the Terra Crash, many companies announced lay-offs and froze withdrawals due to extreme market conditions.
- Cryptocurrencies use the decentralized system to record all the transactions and issue new units.
- Jair Bolsonaro, the president of Brazil, signs a crypto regulation bill.
Future of Cryptocurrency
Whatever we are speculating about crypto markets, there is a lot of uncertainty in the market. However, the market is recovering, and experts predict a bullish movement very soon.
But the reality is that there is no history in the crypto market, so predictions value less. That’s why investing only the amount that you can lose is essential.
It is recommended to Invest small amounts only and never assume you can use your crypto savings for retirement or any other purpose because the crypto 2022 market is highly volatile. No one can predict the future of cryptocurrency because of its volatile nature.
- The price of cryptocurrencies dropped more than 60% in 2022 because of international scams and uncertain regulations.
- The fall of crypto has already hit dozens of crypto firms and opened many criminal probe options.
- Bankman Fried has illegally taken $10 billion in FTX customers’ funds for the trading firm.
- Many big crypto platforms are facing large outflows because of the bankruptcy of FTX.
Future of DeFi
If you have ever invested an amount in cryptocurrencies, then you will be familiar with DeFi, which means Decentralized Finance. It mainly refers to financial services powered by Blockchain technology and Cryptocurrencies.
DeFi believes in intelligent contracts that replace intermediates like Lenders and Banks. As a result, our daily transactions will get replaced by software, and there is no central authority to report to the DeFi space.
DeFi is in its infancy, just like the early stage of the Internet. By just keeping these things in mind, experts stated that there would be some bumps and bruises in its development.
Future of NFTs
Non-Fungible tokens have been in the market since 2014. However, this novel technology has yet to do something more significant in the mainstream.
The NFTs represent digital ownership of irreplaceable intangible items and have already attracted the attention of celebrities from Gucci to American Express.
The total number of NFTs sales was $25 billion in 2021, just $94 million in the previous year.
Having this many sales is quite impressive, but still, experts need clarification about whether NFTs will remain in the market or if it is just fed. On the other side, creators and artists also expect it to be the following form of monetization.
As per reports, the market may be cooling off. At the start of the year, one million active accounts were buying and selling NFTs, but this figure declined to 4,90,000.
The reason for this fall is the declining price of cryptocurrencies, and the market has to suffer more in the future. In addition, inflation, rising interest rates, and the Russia-Ukraine war are reasons for this bearish movement.
The expectations of NFT growth were higher after analyzing the results of 2021, but that growth could have been more consistent, and the market was leveled again in 2022.
Users should also know that, from per investment perceptive, NFTs are riskier than cryptos. The reason is that you are investing directly in a leveraged market. Unfortunately, people are not aware of these things, and they are investing for some fun.
That’s why it is always recommended to stay away from NFTs, especially when there is a general decline in crypto prices.
What may happen in the second half?
It’s been an unpredictable year of the crypto industry, and a series of unfortunate events took place one after another. No price has sustained its position long, and we analyzed a spectacular crash. Here’s what may happen in the second half.
The industry will be volatile
The crypto market is expected to be volatile in the second half of this year. The market crashed for several reasons, such as the Ukraine war, inflation in the US, and the continuous rise of oil prices that have spooked the crypto industry.
Worryingly, no sign assures the departure of this dark phase, and that’s why the market will be volatile as it continues.
The arrival of new crypto regulations
The European Parliament market became the first comprehensive crypto regulation over digital assets. All the experts said that it would be a trendsetter globally. Everyone is demanding government intervention to use crypto freely.
It is easy to predict that we will expect some regulations to come to crypto rather than later.
No more an outlaw for crypto
The crypto industry promises to become independent of this financial industry. As many people find their investment risky, they withdraw their amount. It makes a harmful impact on the market, and crypto has become volatile because of this reason.
Many predictions have been made, and it is expected that the end of 2022 will make a reverse turn to stabilize the value of cryptocurrencies.
Boom of NFTs
Whether we talk about sports or the music industry, NFTs have made an enormous impact in turning the revolution up. Even many popular cultures will connect to the crypto industry through NFTs. Whether they are a celeb or sports person, everyone will get connected to the crypto industry either now or later.
The crypto world has been revolutionizing for the past few years, but this year has come with many tantrums. The market will crash, and the investors will make a considerable loss. Well, the prices have dropped as no one expected but is this a good time to invest.
It is a good time because many experts have predicted that the value of these cryptocurrencies will rise again. As a result, many countries’ finance departments want to develop some regulations to make a safe environment for everyone.
Q. What is the future of cryptocurrency?
Ans. Bitcoin is the main indicator of the crypto market, and almost all other cryptocurrencies follow its path. Despite high trade volatility, the market is expected to revive its position in 2023.
Q. Can cryptocurrency replace cash?
Ans. After analyzing the volatile nature of cryptocurrency, the IMF is entirely against adopting cryptocurrencies as a national currency.
Q. When will crypto rise again?
Ans. The crypto market will rise again after mid half of 2023 only if the Federal Reserve Bank stops the hike of interest rates in 2023 and make some cut-offs by early 2024.
Q. Which crypto will survive for a long time?
Ans. Cryptocurrencies like Bitcoin and Ethereum have vast possibilities of survival for a long time. These cryptocurrencies have a huge market capitalization and a reputation in the market.