The first half of 2022 has been marked by a significant
decrease in value for primary cryptocurrency tokens. Bitcoin and Ethereum are
still down by 50% from their all-time highs in late 2021. The smaller surges in
recent weeks suggest that the market may be beginning to rebound. However, no
one can say when or how high prices will climb. Some experts believe that the
market has not yet hit its lowest point. They also think values could fall even
further before sustained recovery occurs.
There is an increase in interest from major companies and the Biden administration. U.S. government officials express more interest in regulating cryptocurrency.
So, what can we expect for the rest of 2022?
It's tough to say where the market is headed in the long run. Still, experts track developments like institutional adoption and regulation of crypto payments. This gives them a better idea of where things are going. Let's see what the experts say.
Regulation of Cryptocurrency
Lawmakers are having conversations about crypto assets regulation. This results in establishing guidelines and laws to make cryptocurrencies safer for investors. Additionally, make it less appealing to cybercriminals. These continuous conversations are happening in Washington, D.C.
It is also happening globally to understand better how to protect investors and discourage criminals from taking advantage of digital assets.
So far, some progress has been made on the regulatory front in 2022. In March, President Joe Biden signed an executive order. This order called on government agencies which is used to study the "responsible development" of digital assets. This included stablecoins. Recently, the U.S. Treasury Department created the initial framework to stem from President Biden's executive order. This outlines how the U.S. should engage with other countries about digital assets.
Broader Adoption of Institutional
Cryptocurrency
Mainstream companies across many industries took an interest. In some cases, they invested in — blockchain an cryptocurrency in 2021. For example, AMC announced last year it would accept Bitcoin payments. Fintech companies like PayPal and Square also bet on crypto. They allow users to buy on their platforms. Tesla accepts Dogecoin payments. They also continue to go back and forth on their acceptance of bitcoin payments. Experts predict more of this buy-in soon.
Some crypto experts believe that prominent global corporations could increase cryptocurrency adoption rates. As it stands, Amazon has recently stoked these rumors by posting a job opening for a "digital currency and blockchain product lead."
Bitcoin's Future Outlook
Bitcoin's price is a good indicator of the overall cryptocurrency market. It is the largest cryptocurrency by market capitalization. The rest of the market usually follows its trends.
After a wild ride in 2021, Bitcoin's price reached an all-time high of over $68,000 in November. But then it came crashing down in early 2022.
The bitcoin market slumped this year due to continuous macroeconomic instability. This was caused by increasing inflation and a volatile stock market. The other reason was climbing interest rates and concerns about an impending recession. Bitcoin's value has decreased by over two-thirds since last November and hit a recent low of $17,500. Professionals still cannot agree whether bitcoin has already reached its bottom line. Some say it has, while others argue that bitcoin could fall as low as $10k in the next two years.
But how high will bitcoin go in the long run? While it's been an uneven start to the year for bitcoin, experts still say it will hit $100k — and it's more a matter of when not if. Bitcoin's past may provide some clues about what to expect looking forward.
Ethereum's Future Outlook
Ethereum is the second-largest cryptocurrency in the world. It is also the most well-known altcoin on the market. Like bitcoin, it can be a good measure of the crypto market. It has grown in value in the last six years — from $0.311 at its 2015 launch to around $4,700 at its highest late the previous year.
While it's still a long way from its all-time high, Ethereum's price has the potential to climb for the rest of 2022. Experts say that the success of Ethereum's upgrade on September 19th could impact the network's future. Ethereum is transitioning its technology to a more energy-efficient version. According to insiders, the name of this version is "The Merge." This upgrade promises to make the network more faster, efficient and cheaper.
Experts speculate that if Ethereum completes its merger, ethers price will increase. It may reach as high as $12,000 by 2022. Investors track Ethereum's every move leading up to the merger. They sometimes take advantage of the current market conditions by buying. At the same time, prices are low in anticipation of a potential price surge. With time, we will get to know if Ethereum's price will either rise or fall back down to previous lows. Either way, it's a risky investment, according to experts.
The Future of Cryptocurrency
We can all guess what might happen to cryptocurrency values in the future. It's important to remember that no one can know for sure. Since crypto is such a new investment, there isn't much history to go off on to make predictions. This is why it's crucial that you only use the money you're comfortable losing. For long-term wealth building, it's generally wiser to stick with more conventional investments.
Keep your investments humble. Never focus on cryptocurrency over other essential financial goals. Financial goals like saving for retirement or repaying high-interest debt come first.
