Last year was a big year for cryptocurrencies. Many are curious how 2022 will play out. Over the past year, Bitcoin has hit new all-time highs. Ethereum also did the same late last year. The US government has started to look into new regulations for cryptocurrencies.
Due to the rise of digital currencies, people have become more fascinated with them. It’s no longer just a topic for Wall Street investors. In 2021, the world’s attention was focused on the cryptocurrency industry. It was a bit of a breakthrough.
Although the industry is still in its infancy, it is constantly evolving and can be prone to big drops. As a result, it’s difficult to predict where the Bitcoin bubble will pop next.
5 Expert’s Opinions on the Future of the Crypto Market
- Stricter Cryptocurrency Regulations
The US government is currently working on regulations for the stablecoin industry. Its goal is to make sure cryptocurrencies are safer for investors and less prone to cybercrime.
Despite the number of regulations the industry has to face, many say that they would welcome clear regulations. Federal Reserve Chair Jerome Powell and SEC Chairman Gary Gensler both said that they have no intention of enforcing a ban on cryptocurrencies.
Gensler also said that cryptocurrencies are likely to cause problems for investors if the regulations are not enforced. His statements are in line with the thinking of the US government.
Even if the regulations are not implemented, Gensler noted that investors would still get hurt if they do not. This sentiment is consistent with the thinking of many US policymakers, including the Biden administration.
Like most things about cryptocurrencies, it comes with various hurdles. For instance, different agencies may have jurisdiction over different types of transactions. Clear regulations would help remove a major obstacle for the industry since many US firms and investors are still operating without clear guidelines.
The launch of the first Bitcoin ETF on the New York Stock Exchange in October was a major step toward making cryptocurrencies more mainstream. BITO Bitcoin Fund was the first cryptocurrency exchange-traded fund to debut on the exchange. Critics of the BITO ETF say that it is not enough to support Bitcoin as it doesn’t directly hold the currency. Instead, it uses Bitcoin futures contracts.
Although it’s too early to tell how many people will trade on BITO, it’s clear that more people are starting to use cryptocurrencies as an investment option. With more people starting to use it, the demand for crypto-related products will also increase.
- Broader Adoption of Institutional Cryptocurrency
In 2021, many companies started taking notice of the potential of cryptocurrencies. Some of these include banks, which started accepting Bitcoin payments. Tesla also started accepting Bitcoin payments.
Experts believe that more companies will start accepting cryptocurrencies in the second half of this year. One of them is Amazon, which could create a chain reaction of other institutions wanting to adopt the technology. Rumors that Amazon is getting into the crypto game started after the company posted a job posting for a lead role in its digital currency and blockchain strategy.
- Future Outlook of Bitcoin
Bitcoin is considered the most significant cryptocurrency by market cap. In 2021, Bitcoin’s price went through a wild ride, with its highs reaching $68,000 in November and April. This crypto volatility is a big reason to keep your investments at less than 5% of your portfolio.
Despite the volatility, experts believe that Bitcoin will eventually reach $100,000. Its past performance provides useful clues on how it will perform in the future. Due to the volatility of Bitcoin, it is a good reason for investors to adopt a steady long game when it comes to investing in cryptocurrencies. Doing so can prevent emotional reactions that can cause investors to make hasty decisions and cause them to lose money on their investments.
- Cryptocurrency’s Future
Although cryptocurrencies can provide long-term wealth opportunities, they are still new and speculative investments. No one knows exactly what will happen in the future. Instead, it’s important to stick to more traditional investments.
Frederick Stained, a financial advisor with Life water Wealth Management, said that cryptocurrencies are worthless if they became banned in developed nations and investors shouldn’t put all of their eggs in one basket. Instead, put aside a small portion of your assets for retirement and pay off high-interest de
