What Does 2022 Hold In Its Bag For The Crypto Market?
The world of digital coins has been growing despondent, as the year nears the last mile. And the hope for a bullish end to 2021 continues to wither. The coin market remains bound to the narrow range, with the digital assets strolling over trivial gains.
However, the yearn for a bullish new year grows louder, with burgeoning expectations. Meanwhile, an exponent from the crypto industry illustrates his top crypto predictions for the incoming year. Merchants and investors of the crypto town are now ever vigilant. With the trends in the market as a new financial year approaches the block.
A Casket Full Of Surprises?
The approval for spot Bitcoin ETFs by the U.S could be one of the biggest catalysts for the industry. Marshals of the crypto industry have been longing for the Bitcoin spot ETFs in the U.S. As the United States accounts for over 50% of the total equity markets around the globe.
- The analyst cites that just one Canadian ETF has managed to get 30k BTC, while Canada accounts for 2% of the global markets. The outcome of the approval of spot ETFs in the U.S would be a brainer.
- Major central banks adding BTC to their balance sheets. Countries like Iran, Venezuela, and El-Salvador already have it on their balance sheets. Mubadala investment company from UAE has been considering investments in the crypto ecosystem. More initiatives like Sparkasse’s plan to enable Bitcoin purchases for its customers can be expected.
- The year 2022 could see the second or more countries legalizing Bitcoin as a legal tender. We can anticipate crypto-friendly nations, and remittance-dependent nations adopting Bitcoin as a legal tender. El-Salvador has been an inspiration for countries to consider legalizing Bitcoin as a legal tender. Which helps combat the inflation crisis.
- Ripple’s triumph in its legal tussle against the U.S SEC could finally make its way in 2022. Ripple’s stout stance against the SEC, is now known to masses in the crypto industry and beyond. Ripple winning the case would bring a favorable stance for the entire crypto industry.
- The second-largest cryptocurrency Ethereum could see a drop below 50% in its TVL on-chain. Which has dropped to 66% from 97% at the start of the year, the gas fees have made way for users to look elsewhere. However, 2022 could be a game-changer for Ethereum if ETH 2.0 comes into the picture.
- The space could witness an increase in big money flowing, with companies other than Tesla holding Bitcoin for its reserves. Facebook could be a major contender, considering its foray into Metaverse. The firm’s NOVI wallet could also be linked to Crypto transactions.
- The market capitalization of the entire coin market could see surpassing the $10 Trillion milepost. The industry has seen peaks of $3 Trillion in the month of November. From past actions in the market, a $10 Trillion market cap is foreseeable for 2022.
Collectively, the incoming year could accompany a bag full of goodies for the crypto street. With emerging sectors like metaverse, gaming, NFTs, De-Fi flourishing ahead of time. We can expect the industry to take giant strides towards a $10 trillion market cap. Alongside, digital assets claim the due shares.
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