Interest in cryptocurrency has grown stunningly in recent times. With crypto attaining all-time highs and facing big falls at the same time, it is undeniable that the crypto space is emerging like a more fascinating genre. No wonder we have experienced a huge number of people boarding this fast-moving bandwagon of crypto investment. In fact, people are increasingly becoming inquisitive about the trends surrounding cryptocurrencies to find out its drive in 2022. The first half of 2022 for the crypto market has been catastrophic.
Notably, the two famous cryptos, Bitcoin and Ethereum have had a huge drop of about 50 percent from the all-time highs they recorded in the last quarter of 2021. Although we have observed gradual surges in the recent past weeks, the crypto markets are mainly mired. At this point, few people are sure about what crypto prices will be like in the coming months before any sustained recovery.
By and large, it is not easy to provide a prediction of the direction of things from a long-term perspective. Many experts are putting into consideration factors such as the regulation and institutional adoptions of digital payments to have a better clue about the market. In this article, you will get a taste of recent trends in Bitcoin performance. Please keep reading to know what I have in store for you.
The dominance of virtual or digital currency like Ethereum, Bitcoins and Litecoins are anticipated to drive the market at a stunning pace in the coming years. Owing to the recent performance of Bitcoin, folks from the developed countries may adopt the best functions offered by the digital currencies. These include the easier and flexible transactional methods.
From the global perspective, the Bitcoin industry is likely to continue to operate on a precise regulation around cryptocurrencies. Currently, many nations are in the process of creating laws and policies that are aimed at ensuring that the crypto investments are safer for investors.
The strict regulations have also helped to prevent the cybercriminals from unauthorized access. Such regulations are also expected to come with numerous challenges based on the fact that different countries may not have powers to oversee them holistically.
The recent regulatory announcements around Bitcoin is likely to affect the price within the volatile markets that exist at the moment. On the flip side, it should be known that regulation is good for the crypto industry. Appropriate regulatory guidelines will be pivotal.
Bitcoin to Remain under Pressure
The year 2021 was a good one for Bitcoin. Ideally, it managed to touch a high around $70,000. Interestingly, the year began with Bitcoin trading at $29,000. With this kind of performance, the investors should arguably expect a bearish trend within the legacy cryptocurrency in 2022. Although there is a differing opinion among experts, where some expect Bitcoin to virtually wipe out all its past years’ accumulated gains, this is not the same with others. Some anticipate a huge resumption with the crypto to record a $100,000 mark.
The recent dramatic turn of events such as the war between Russia and Ukraine has greatly affected Bitcoins performance. Majority of experts expected a rise within the crypto space. However, the Russian invasion of Ukraine led to the opposite. Even at the backdrop of this invasion, many analysts posited that the crypto seemed to have played a crucial role for the warring parties.
In fact, Russia turned to Bitcoin and other major cryptocurrencies to combat the sanctions levied against them for the invasion. In fact, the primary objective was built on the anticipation that sanctions against it may arise to many counts of economic losses.
Notably, the Bitcoins participation in the events between Ukraine and Russia points to the beginning of a new trend of crypto warfare. On one hand, it will play a huge role in changing people’s mindset about a decentralized financial system.
Bitcoin to Continue Driving the Green Energy
Anything perceived as good must have its bad side. The cryptocurrency such as Bitcoin has been on a receiving end because of the perceived negative impacts on the environment. The process of mining Bitcoin consumes a huge amount of energy. In the US alone, it generates an estimated 40 billion pounds of carbon emissions. Considering this kind of emission, the Proof of Work (PoW) provides a necessity for the utilization of energy produced by the fossil-fuel. Recently, however, the emerging blockchain networks have steadily begun to integrate more environmentally friendly sources of energy. Moving forward, the attempts to create a more sustainable agreement on the type of energy to use will result in the adoption of green energy.
If you are interested in just learning about Bitcoin, expect a lot of speculation around this coin. However, few will boldly tell you that it is a new investment that is likely to take a completely different trajectory in the coming few years. In this way, we advise to keep a lookout for the trends. Business entrepreneurs should also endeavour to facilitate investors by providing them with a robust crypto app. We are anticipating future Bitcoin performance to experience swings in the midst of the positive trends. If you are an investor, this is the time for you to make a brilliant exploration of the crypto space. I hope you found the article interesting.