To put it mildly, this year has been quite chaotic for crypto assets. The industry has suffered a string of unlucky occurrences that have caused it to lose ground, erasing any predictions made by industry analysts at the start of the year. In light of this, we’ve outlined a few forecasts for how the remaining months of 2022 may turn out for cryptocurrency investors and aficionados. They are listed here in no particular order.
Volatility Will Continue
Volatility has been the buzzword for the crypto industry in 2022. While the year started off fairly well, subsequent months have seen multiple global issues come up across the world such as the war in Ukraine decades-high inflation in many countries, and rising oil prices. Most of these issues do not show any signs of slowing down or going away anytime soon. This means that volatility will be seen in global markets as well as the crypto industry over the rest of 2022 as well. While some experts believe that the current long winter will end before the year ends, it’s difficult to predict when things will start to get better.
Regulations Will Come In
The decoupling of stablecoin Tether with the US dollar sent shockwaves through the financial and crypto community and prompted Janet Yallen, US Treasury Secretary to say that risks are rising when it comes to stablecoins. On a related note, India’s Finance Minister Nirmala Sitharaman has also raised concerns about cryptocurrencies being used for nefarious activities and called for a global solution. Industry heads themselves are hoping for some kind of government intervention that will allow them to function more freely. All of these combined means that we will begin to see some kind of regulations coming to crypto as the industry gets bigger and matures further.
Pop Culture Will Continue To Popularise Crypto
Whether it’s games, movies, or music, popular culture will find more ways and means to connect with the crypto industry, be it through NFTs as well as the metaverse. This, in turn, will bring more mass adoption of these new technologies as celebrities and labels leverage their loyal fan base on these new platforms. Whether it’s cricketers or celebrities, sporting leagues, or global brands, everyone will jump onto the crypto bandwagon sooner rather than later. The only question is, will you be ready for them when they announce their drops?
New Coins Will Take Centrestage
The combined value of all crypto assets plunged from a high of $2.7 trillion last November to less than a trillion over the past few months, led mostly by a drop in the value of its two biggest coins viz., Bitcoin and Ether. While other popular coins also plunged drastically, there are signs that new coins led by the revamped Ethereum blockchain and other stablecoins as well as game coins might find more favor in the months to come as consumers look to familiar and non-risky coins. This will lead to the discovery and adoption of newer coins than the ones we’re currently seeing outside of the big coins. If you’re wondering where to find and invest new coins, we highly suggest checking out ZebPay, one of India’s oldest cryptocurrency exchanges that has over 100 coins (and counting) for members to invest in.
Markets For Crypto And Money Will Continue To Interact
The big promise of the crypto industry being independent of the global financial industry is now a moot question. Almost every global event has a direct impact on the size and scale of the crypto industry as investors feel the jitters and withdraw their investments from an industry still seen as risky. The US Fed’s decision to raise interest rates has not only roiled equity markets worldwide but also had a direct effect on the crypto industry which has seen its value eroding in recent times. Suffice to say that any future investments in the crypto industry will also need to take global matters into account.
These are just some of the predictions about how the global crypto industry will play out. One thing is for certain, the dark times aren’t here to last forever. By the end of 2022, most experts predict that the current downturn will be reversed.
