Reeling from the colossal loss as an aftermath of the May crash, the crypto industry is raising massive concerns. The recent crash wiped off around $400 billion- $800 billion (worldwide) worth of investment in crypto. You can’t blame the investors for their growing apprehension in the crypto industry as a whole. But what do the analysts and experts have to say about crypto in 2022? Does the crypto industry hold the potential to overcome the ongoing winter this year? Visit multibank
Well, these questions call for discussions, more research, and of course patience. We will get into what experts are speculating about crypto in 2022 but before that let’s have a look at the major factors that caused the crash in 2022.
Factors leading to crypto crash in 2022
- Rising inflation
- Rising interest rate
- Massive geo-political tension fueled by the ongoing Ukraine-Russia war
- Decline in tech stocks has also led to downfall of crypto in 2022
- Attack on TerraUST, causing it to lose its equal unit value with USD
Will crypto be able to rise in 2022?
2021, especially the final quarter of the year, was a fantastic time for the crypto industry overall. A bundle of major coins, including bluechip ones like BTC and ETH, reached their ATH last year. The crypto industry itself rocketed to an awe-inspiring 3 trillion USD last year. Cut to May 2022, the crypto market cap value had plummeted to a shocking 949 billion USD!
So, yes, the current devastated state of crypto once again brings us to the same question about crypto in 2022.
Well, when it comes to the future of crypto in 2022, the industry is divided in its opinion.
Investors are shaken
A group of crypto experts and analysts are skeptical about the possible rise of crypto in 2022. According to them, the latest crypto crash has unleashed a sense of panic among the investors. A crash always does the same but things are probably little different in 2022. One of the main reasons behind why it might be different for crypto in 2022 is the COVID-19 pandemic.
The pandemic was a huge blow to the economy worldwide. Umpteen numbers of people have lost their jobs and hundreds of small businesses had to shut down their operations. The mainstream economy is still recovering from a devastated health. People are struggling to pay their bills and daily expenses- they barely have that extra money to invest in a volatile industry like crypto in 2022.
Difficult to receive investment inflow immediately
A crash or winter is nothing new to the crypto industry. But all the previous crashes (before 2022) were followed by new investment inflow into the crypto scene that eventually helped the industry to pull up and march ahead in glory. But, standing in the post-pandemic stage, investors are deeply worried about investing in crypto in 2022. If the pandemic was scary for them, the May 2022 crash had further dampened their confidence. Many of the investors who are currently holding savings in the crypto scene will probably have to sell it off to pay their monthly bills. When a person is having a hard time to maintain his/her daily life – and when s/he has to encounter massive loss in investment- do you think s/he will have the spirit to immediately invest further money in crypto in 2022? Odds are, the person will now think 10 times before investing again in crypto in 2022 and probably opt for a rain check.
New investors are skeptical
This sense of panic has affected many aspiring investors as well. A major share of aspiring and new investors is having second thoughts about investing their hard-earned money in crypto in 2022.
Bottomline is, these crypto experts are not confident about the rise of crypto in 2022. According to them, the crypto industry will bounce back but it will take some time, say 2023.
Not all experts are pessimistic
Another group of experts are deeply optimistic about the rise of crypto in 2022. Some of them have even stressed that there is nothing much surprising about the May 2022 crash.
According to them, the crypto industry is evolving and the crash is just a natural part of the evolution. A bunch of cryptos reached record high a few months back, hitting incredibly high volumes. Now, the industry is approaching a correction mode that will bring the coin values to a balanced state in a few months.
Several crypto experts have predicted that multiple coins will reach new heights in a few months and that would eventually lead to the rise of crypto in 2022. For example, BTC which is around $20,000 in June 2022, is predicted to reach $77,000- $100,000 in the last lap of the year. On the other hand, ETH will scale up to ETH 2.0 with the revolutionary Merge upgrade that will also shoot up its price. Many other altcoins, such as ADA, are planned for game-changing upgrades that will help to scale up their price in a few months. They are mostly optimistic about the final quarter of 2022.
Less space for craze coins
A bunch of leading analysts and experts have even noted that probably the crash was necessary for cleansing of crypto in 2022. It’s because the crypto industry is now flooded with too many crazy coins that are mostly built on hype and do not serve any actual purpose. Worse, they might not be able to thrive after a few years. Investors are now getting more conscious about where to invest in crypto in 2022. It’s not that they are not eager to invest in crypto in 2022 – but they don’t want to put their money on coins that are simply driven by craze and can’t promise a sustainable future.
So, according to these experts, while the crypto industry overall is poised to make a comeback in the latter part of 2022, some of the specific coins might experience a further plunge.
Finding silver lining
Smart investors have managed to find a silver lining in the crypto crash cloud this year. Being veteran investors, they are confident that a futuristic and game-changing industry like crypto will always bounce back after a devastating crash. crypto debit card
With most of the coins featuring low prices at the moment, these investors are lining up to make the most of “buy the dip” with crypto in 2022. It’s these series of investments from strategic investors that are pulling in more money into the crypto scene that would eventually help to scale up crypto in 2022.