If you are one of those who have been taking interest in the crypto world for a long time now then you must be keeping regular updates on the digital assets’ news. However, following the trade market news and future predictions might fail sometimes. The year 2022 has not been going quite great for the bitcoin crypto investors now due to the market price fluctuations and falling prices all over the world. You must have had questions in such circumstances like:
· Will cryptocurrency soar or tease investors?
· Will the volatility of Bitcoin last?
· Does regulation have a bigger impact?
· Which cryptocurrency will be the smartest investment for the upcoming year?
This year, 2022, inflation, macroeconomic uncertainty, and rate hike impacted the crypto market. The majority of cryptocurrencies suffered, and some 2021 predictions came true.
Analysts made a few predictions that may never happen in 2022. This article will help you learn how to look at the future of cryptocurrency by analyzing the past. Some interesting crypto predictions that may never come true before 2022 ends:
1. Bitcoin Crossed the Mark of $100K
In 2021, some analysts made price predictions when Bitcoins hit $69,000, which is an all-time high. Predictors estimated the price of BTC to be $100k or much higher in 2022.
Besides, The Stock to Flow (S2F) model developed by Plan B in 2021 predicted astronomically high values of Bitcoin, it was expected to reach $100K by 2022 and $1 million by 2025. Willy Woo, a well-known expert, forecasted that BTC will be worth $162K by the end of the year. He also believed that the bitcoin price would not fall below $30,000. But the current price of BTC is below $18,000.
2. Only Bulls Rule Crypto Market
In an interview, Woo mentioned that 2022 would not be a bear market for cryptos, and Bitcoins will see more price fluctuations. However, this statement will never come true, and the bearish market took over the crypto market. The bigger market appears to be in the hands of bears, as most of the leading cryptocurrencies are down double digits from all-time highs, but the price of bitcoin has recorded a decline of nearly 70%.
3. USDC will Surpass Tether Popularity
The most reliable cryptocurrency is Tether. The past year was successful for USDC and its expansion when the market capitalization of the stablecoin exceeded $55 billion. Traders and analysts believed that the USDC would replace the USDT or Tether as the most popular stablecoin on the market as a result. Its market cap reached $70 billion, while USDC’s reached $45 billion. Therefore, the stablecoin is the second most popular coin based on its market share.
4. Replace Bitcoin with Ether
Also, in the same year Ether beat the price of Bitcoin by a good margin. ETH gained 70% of the market in 2021, and BTC only acquired 64% in October and November 2021. Therefore, analysts predicted that ETH would outperform Bitcoin in 2022 as well.
The larger market predicted that the September 2022 Ethereum Merge will cause ETH’s price to skyrocket and once again overshadow BTC price movement. However, ETH didn’t experience this because it largely followed BTC’s pattern. In 2022, the Return on Investment for ETH and BTC was negative. The annual return on investment for Ether was -65.48%, compared to -68.30% for Bitcoin.
5. Meme Coins and Metaverse Token Beat Bitcoins
In 2021, Dogecoin (DOGE) and Shiba Inu (SHIB) were popular due to Elon Musk-fueled rallies. The same thing happened with metaverse tokens such as ApeCoin(APE) and Decentraland (MANA) after receiving immense social interest. At the end of 2021, the popularity of Metaverse tokens increased while meme coins like DOGE and SHIBE led market gains in Q3 2021. Meme tokens and metaverse coins, however, lost their appeal this year as investors looked to invest their money in the best assets.
Want to Learn More about Cryptos?
Hope this article helped you to determine the crypto market. Cryptocurrencies are a great way to invest your money, but they are risky for people who can’t lose money. Unlike stocks, bitcoins and other digital currencies are unstable. It is advisable to not spend your entire budget in the first go and even if you decide to go for serious crypto investments, you should only start with 5% of the entire budget at first. You should Sign Up here to attend the bitcoin trading training if you want to learn more about various cryptocurrencies and how to trade them. Develop your understanding of how to forecast the cryptocurrency market and its prices.