Crypto Regulatory predictions for 2022

By | April 4, 2022

It can be stated that the volatility of cryptocurrencies has been at an all-time high in recent years, and making accurate predictions regarding the trends that can take place in the crypto industry is a tough nut to crack. However, it is not impossible upon careful analysis of the recent market trends and the stance of governments and organizations around the world regarding cryptocurrencies. Let us consider some of these attributes that contribute to the growth or decline of the crypto market, and bitql app, and ponder over some of the crypto regulatory predictions for 2022. The year 2021 was a crucial one, as several financial institutions started showing interest in cryptocurrencies. However, the heightened state of regulatory scrutiny faced by Bitcoin and other cryptocurrencies, along with intense price fluctuations, have dampened the market for Bitcoins. Let us focus on some of the major predictions for the year 2022.

  1. Crypto Crash: Some experts indicate a sharp decline in the prices of Bitcoin and other cryptocurrencies during this year. Bitcoin prices were sitting at $69,000 at an all-time high, and right now, it is not even half of what it was back then. Some experts have advised investors to get out of Bitcoins, and they state that the price of Bitcoins can go as low as $10,000. This would wipe out all the gains that have been made in a year and a half. Thus, the Crypto crash is one of the most prominent predictions for the year. However, some experts state that the graph is quite similar to that of 2018 when BTC reached around $3,000 at its lowest and climbed up to around $20,000 when the prices grew.
  2. Rotation into DeFi: DeFi, or Decentralized Finance, is one of the biggest things to look up to in the crypto market as of now. It has the potential to revolutionize how money is exchanged around the world. Ever since the crypto industry has started booming, the share of Bitcoins has started to dwindle on a minuscule scale, and it will continue to do so. This is because other players, such as Ethereum and Cardano, are picking up their pace and increasing their hold in the market. It is predicted that concepts such as DeFi will gain the most traction in the crypto market. DeFi aims to form financial products that are traditional in nature, minus the middlemen. This empowers the parties involved in the trade. DeFi is a broader trend in Web3 and has already crossed an overall investment of $200 billion and is poised to grow higher in 2022.
  3. Crucial regulatory decisions can be taken: Several countries have tightened their grip over the crypto industry this year, with China banning all transactions related to cryptocurrencies and USA tightening their regulatory laws. Even India imposed a 30% tax on crypto gains, which has led to crypto enthusiasts with risen eyebrows in dismay. The grip of the US government can tighten even further, and clarifications can be made regarding the gray area of cryptocurrencies. Regulatory decisions can also be made in relation to stablecoins, whose values are pegged with fiat currencies. Tether, the biggest stablecoin, which has its value pegged to the USD, is being questioned regarding the availability of enough assets for it to be pegged with the USD.
  4. Crypto ETF approval: Crypto Exchange-Traded funds are also gaining legitimacy in the market, as the arrival of the Bitcoin ETF on the New York stock exchange last year. The crypto ETFs allow investors to invest in cryptocurrencies like Bitcoin through their traditional investment brokerages. Crypto ETF can be established as another prominent way of profiting from the crypto industry.

The predictions made in favor of Cryptocurrencies over the year 2022 suggest a possible growth in the utility of cryptocurrencies in the real world. Whether Bitcoin and other cryptocurrencies are going to blow up this year is still a question. However, one thing is clear, cryptocurrencies have the capability of revolutionizing how money works for the better, and it is up to the governments to encourage the trading of cryptocurrencies such as Bitcoins over Bitcoin Trading Platforms. It is important that all the governments around the world support the growth of crypto industries, as it can allow investors to create generational wealth!

Category: Crypto

About Safdarali Rizvi

Safdarali Rizvi the management graduate. Has been an avid book reader all his life so naturally loves playing with his words. His curiosity for discovering futuristic opportunities lead him to explore the world of cryptocurrencies. He has a real passion for calisthenics and sports. His management abilities and hunger for learning brings tremendous value to our team.

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