If we consider the previous year, Bitcoin has had an exquisite year. Ever since the beginning of 2021, this digital currency has gone up the ladder by approximately 70%, which is an astounding number. If we look at the worth of the crypto market as a whole, we come to the value of $2 trillion. That’s also an astounding number.
The year 2021 was also when Coinbase went public in April. Coinbase was the first crypto company among the major ones to go public. As a result, we also witnessed greater participation of Wall Street banks in cryptocurrencies, Goldman Sachs, for example.
Additionally, we also witnessed the approval of the first exchange-traded U.S. fund predominantly related to Bitcoin. It is no surprise that crypto casinos are also growing in popularity, where people can deposit these digital currencies to play their favorite casino games.
As reported by Zamsino, Bitcoin casinos have all the advantages of regular online casinos, with a boost of a couple more. These advantage boosts include safe and fast financial transactions, encryption methods, and easy access.
However, letting your life revolve around cryptocurrencies can sometimes be tricky as there are intense and constant fluctuations in prices, which has led esports to assume that this market could be facing a downturn in the near future.
For this reason, we’ve decided to dedicate this text solely to cryptocurrency trend projections by the end of 2022, which could face a roller-coaster.
The probable crash of crypto
Several experts believe that Bitcoin will face a severe decline in values in the months to come. In November 2021, cryptocurrency scored a record of approximately $69,000. However, as we speak, this value is now below $50,000, almost 30% less than the peak in November.
Information from Wall Street also suggests another decline of around 20%. Carol Alexander, who is a finance professor at Sussex University, expects the value of Bitcoin to fall to $10,000 by the end of 2022, which would wipe away all the success Bitcoin has had in 2021.
Carol Alexander also added that whoever is an investor for Bitcoin should reconsider taking back their investments, as the price of this digital currency will likely crash by the end of this year. She added that investing in crypto is risky, as no fundamental value is set in this currency. This type of digital money is more like a “toy” than a serious investment, she also pointed out in her statement.
Alexander also warned the public that this is a matter of “history repeating itself,” and here’s why. In the year 2018, the value of Bitcoin came close to an even $3,000 and climbed to an astounding $20,000 in just a couple of months. Looking at the picture today, we can undoubtedly conclude that investing in Bitcoin is a “hedge” against the governmentally-stimulated rising inflation.
We have to look at things with a microscope and realize that we no longer live in Goldilock’s time. If we do so, we can conclude that a receding liquidity tide is taking place, directly affecting the asset classes with extreme values in the crypto market.
Naturally, not all crypto investors are convinced that the Bitcoin (and other cryptocurrencies) industry will face an end this year. Large corporate investors still keep believing that “things will be different this time” and rely on the fact that crypto values constantly fluctuate, expecting them to rise after this current drawback.
To conclude our lengthy analysis of 2022 cryptocurrency trends, we must mention Yuya Hasegawa, an analyst of the crypto market a Bitbank, the digital asset exchange. This expert stated that the most significant risk factor is called “quantitative tapering” and is something already priced in and decided on.
Closing remarks
We hope you found these predictions helpful and can make your own conclusion from them. Indeed, we’ve witnessed a tremendous fall in the value of Bitcoin recently, and just as it took only a couple of months for this currency to rise in value, it can take just a couple of months for it to lose that value completely.
We’re not here to give financial advice, but considering all this information may lead you to think that Carol Alexander has a point. Whoever invested significant sums in Bitcoin should really consider taking them back as they could ultimately lose their value by the end of 2022.
