Bitcoin costs have seen highs and lows all through 2021 and the world’s largest crypto coin has entered the brand new yr with a bash. It has gained rather more than final yr, reaching its peak of $69,000 through the later a part of 2021. In 2022, Bitcoin costs are within the focus, because the crypto coin had encountered steady falls to succeed in the $42,000 mark, after it peaked, resulting from numerous causes. One is the emergence of the Omicron variant of Covid-19, which was detected late final yr. This triggered buyers from withdrawing their intent to put money into danger attest like cryptocurrencies. Major corrections additionally occurred after Bitcoin peaked, however the crypto coin definitely entered 2022 with extra good points than losses.
“Bitcoin dominance has hovered around the 40% mark for most part of the year. After reaching a new all-time high a few months back, BTC has largely remained range-bound. Bitcoin has transformed from a speculative asset to a store of value. With this in mind, we can expect institutional buying to pick up in 2022,” said Edul Patel, CEO and co founder of Mudrex, a global crypto trading platfrom.
He added that Bitcoin prices might edge towards the $100,000 mark but there was a catch. “In that case, Bitcoin is bound to make a dash towards the $100,000 mark. However, adoption has a massive impact on the price movement. With its limited network usability, the Bitcoin blockchain would need revolutionary changes to even come close to Ethereum’s adoption,” stated Patel.
Vishnu Tadepalli, CEO of Crypto Smartlife, had related predictions for Bitcoin. “We expect 2022 would be a great year for Crypto , as many countries such as the US, India, Australia, etc are looking to bring in further regulatory clarity. Regulatory clarity would further cement Bitcoin’s role as an alternate asset to gold, silver in the global financial market. In addition, 2022 could also be the year when a Spot Bitcoin ETF could be approved by the US SEC. This approval would further catapult the price to over $100K / bitcoin as a spot ETF would remove the hassles of custody, creating new trading accounts, etc for novice crypto investors,” he told News18.com.
In India, cryptocurrency prices this year also depends on the government’s plan to introduce regulatory laws for the digital tokens.
“The new crypto currency bill is bound to make the space more mature. Regulation would lead to companies innovating and building In India. The new bill would provide clarity to several gray areas,” said Patel on the anticipated bill.
This leads us to the question — Should investors invest in cryptocurrencies in this scenario? Patel says there is no perfect time to decide this. “There is no such perfect time to enter the markets. Seasoned investors always look at investing small amounts in regular intervals. It helps in doing dollar cost averaging and eliminates the need to time the market. So yes, now is a good time to start your investing journey,” he told News18.com in a note.
“It is always a good idea to diversify your portfolio. Personally, I will always say yes to investing in crypto but this is not financial advise. DYOR is a rule of thumb. Know your risk appetite and invest wisely. This tech is here to stay as seen and proven by the big companies taking it on,” said Tarusha Mittal, Member of Blockchain and Crypto Assets Council (BACC) and COO and Co-Founder UniFarm.
“Some of the fundamentally good coins to look at are Ethereum, Solana, HBAR, Algorand, Binance Coin, LUNA, etc,” Patel added.
“In addition, 2022 would also be a great year for Crypto-blockchain applications tokens based on themes of Metaverse , Gaming , Defi , and NFTs as the regulatory clarity gets use cases involving these decentralized application tokens to hit mainstream,” opined Tadepalli.
So, when you gear up for the brand new yr, ensure that to decide on judiciously whereas investing in cryptocurrencies, holding in thoughts all the probabilities the sector has to supply.