Bitcoin rising to $100K, further mainstream adoption, and other crypto market predictions for 2022
Banking and other financial institutions will increasingly embrace crypto as more customers want digital currencies to become part of their investment portfolios.
Tue, 28 Dec 2021, 09:44 am UTC
This has been a very eventful year for the crypto industry with the market rally sending Bitcoin(BTC) and Ether (ETH) to new all-time highs in mid-April before crashing in May and eventually recovering to set new all-time highs when BTC traded above $68,000 in November. As the year draws to a close, a number of experts of what 2022 could bring to the scene such as the potential rise of Bitcoin and Ethereum to new ATHs and the adoption of the crypto in other countries.
While the crypto market displayed marked volatility this year, the undeniable fact is that the largest coins such as BTC and ETH posted massive gains in 2021. “There’s no obvious reason to think that pattern will change in 2022,” according to a CNBC article.
For Bitcoin bull and CEO of crypto exchange Abra Bill Barhydt, 2022 could set the stage for Bitcoin and Ethereum to set new all-time highs. In a Twitter post, Barhydt predicted that BTC could rise as high as $100,000 while ETH could soar as high as $15,000.
However, volatility will still be the name of the game. Investors are cautioned of the possibility of drops of up to 20 percent before these cryptos soar to their new highs.
CNBC also predicted mainstream crypto adoption could further advance in 2022. However, this might not mean that other countries would follow El Salvador’s example and start adopting BTC as legal tender.
Instead, banking and other financial institutions will increasingly embrace crypto as more customers want digital currencies to become part of their investment portfolios. With the rising popularity of crypto, banks and financial services providers will have to start offering crypto-related services to entice new and retain existing customers.
Regulatory clarity might remain elusive for the global crypto market. “It’s confusing, but the more the world wants crypto, the more certain governments want to crack down on it,” CNBC wrote.
While it’s technically impossible to ban crypto due to its decentralized nature, governments can still make it hard for their citizens to trade in them such as by denying licenses to crypto platforms. Crypto mining could also face increased scrutiny in Europe and the U.S. due to the activity’s environmental impact.
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