Cryptocurrencies achieved many new milestones in 2021. The global crypto market cap nearly tripled to reach over USD $3 trillion by the end of the year. That coupled with a solid increase in overall adoption in the crypto market plus the rise and popularity of NFTs helped make cryptocurrencies mainstream. So, what’s next? What shape is the crypto market going to take in the new year? Will it rise or can it fall? Let’s speculate.
In 2021, almost all good cryptocurrencies achieved their all-time highs. This includes bitcoin’s breach of the $65,000 mark to set a new ATH of $67,566 in August 2021. This was despite the fact that the worldwide economies are still struggling with the after-impacts of the covid-19 pandemic. Whether the trend will continue in 2022 is yet to be seen.
What does 2022 have in store for the crypto market?
At the time when bitcoin hit its current ATH in August 2021, people started speculating that it can even cross the $100k target by the end of the year. However, it end up losing about 30% of its year-high value as the year ended. At the time of writing this article, bitcoin is trading at around $46,000, which is almost an average of its performance last year.
Going forward, in my opinion, the currency will fall a little further to reach the $30k – $45k mark, before it rises back. And this time, nothing can be said about where it would stop because the crypto market has already breached all the expectations of the investors. It can very likely surpass the current ATH to set a new all-time high record.
The same can be said for other popular cryptocurrencies and altcoins as well. The crypto market has been growing at a steady pace over the past years. First, it breached the $1 trillion mark in January 2021, then it reached $2 trillion in April and then crossed $3 trillion in November the same year. So, the next target for the crypto market to achieve would obviously be the $4 trillion milestones, which can very likely be achieved or even crossed this year.
Uncertainty over covid-19
One of the major reasons why the crypto market started falling by the end of the last year was the growing uncertainty and fears around the covid-19 pandemic, which is again beginning to rear its ugly head in the form of a number of covid variants that are expected to affect the markets’ performances in the coming year as well.
However, as it is widely believed, the crypto market is mostly unaffected by what happens in the traditional markets because it is decentralized and the value of cryptocurrencies is not usually linked with any standard commodities or assets, which is why it is possible that the pandemic will not have a major impact on the crypto market performance. In fact, people may even seek refuge in high-potential cryptocurrencies like the Libra Coin (LC) when looking for a safer place to invest their money against the turmoils of the traditional markets.
Many great things happened for the crypto market in 2021, and even bigger things are expected to happen this year. So, be ready and keep investing.