3 trends to watch as crypto goes mainstream

Where will crypto go in 2022?

Ostensibly, this question applies to the price of bitcoin and other crypto assets. Bitcoin price is already a primary focus area as the world’s largest digital currency sets the trend for the values ​​of other cryptocurrencies.

But investors and analysts have other things on their minds as crypto becomes increasingly popular this year.

Two other notable trends to watch are the greater acceptance of digital assets among financial institutions and the future of non-fungible tokens (NFTs).

Bitcoin crash fears

Some observers fear a collapse in bitcoin prices this year after riding a rollercoaster in 2021.

Carol Alexander, a professor of finance at the University of Sussex in England, told NBC that she expects bitcoin to drop to $10,000 in 2022, erasing its gains over the past year and a half.

“If I were an investor now, I would consider exiting bitcoin soon because its price will probably collapse (in 2022),” Alexander said. She asserts that bitcoin “has no intrinsic value” and is more a “game” than an investment.

But Jeremy Gardner, a California businessman and evangelist, said in an interview with Capital.com that he is confident that bitcoin can weather any storms this year.

“20% to 30% drop usI’ve seen (in 2021), then the rebound of itNothing compared to the previous recovery where the market rose tens of thousands of percent and collapsed. “What were we?We’ve seen sustained support amounting to tens of thousands of dollars.”

No bull market

Benjamin Coen, a widely followed crypto analyst and investor, does not believe that Bitcoin will drop to $10,000. Actually, he expects the bitcoin price to make a big jump eventually.

“It’s not really a bull market,” he said in a recent YouTube post. “It’s just sideways.”

But Queen He said He is bullish on Bitcoin from a long-term perspective.

lately interview With Altcoin Daily, Cowen said he expects bitcoin to accumulate to an all-time high in 2022. But the record is “at least” six months, he said, noting that it may not happen until the second quarter of 2023.

“I think 2022 will be a good year (for bitcoin),” Quinn added.

He and other analysts will also be looking to see how Bitcoin is doing in relation to Ethereum, the world’s second largest cryptocurrency, which is expected to post significant gains in 2022.

Institutionalization is a major topic

According to Gardner, the “institutionalization” of digital currencies will be a major topic as investing in Bitcoin and other digital assets gains more credibility from traditional banks and financial institutions.

Quinn and other analysts share this view.

On the webpage offers Block Analysts Cryptocurrency Outlook George Kaley, a Block Research analyst, said that bitcoin will outperform stocks this year “but it will lag behind in crypto wallets.”

He wrote: “Traditional companies (private equity and venture capital) become more active in crypto in 2021 with private investment increasing to $25 billion from just $3 billion in 2020.” “Most of them are allocated through equity financing deals to the infrastructure, exchange and services business – the strategy is to gain directional exposure to the sector while reducing specific asset risk and operational complexity. In 2022, expect some of these companies to hire, partner or acquire crypto-holding capabilities. directly and implement on-chain return opportunities and co-governance.”

For his part, Greg Lim, senior research analyst at Block, expects to see “more institutional involvement” from traditional finance firms.

“In 2021, we saw notable household names like Visa buying NFTs and getting into digital assets,” Lim wrote. “(fintech, or fintech) and payment services will also continue to shift towards digital asset adoption as in the retail aspect. Digital assets reduce the hurdle of accessing traditional lending, staking, payments and banking services for the historically marginalized.

“While many institutions and participants (the traditional finance company) remain skeptical, they can no longer ignore crypto as a legitimate asset class. In my opinion, many of them are neither bullish nor bearish, but simply want to embrace so as not to be left behind and for the inherent hedges (currencies). foreign) and inflation.

Consumers are familiar with cryptocurrencies

“Your average consumer is now familiar with cryptocurrencies, even if they don’tt realizeIf you’re familiar with cryptocurrencies, whether (they) hold something like Bitcoin or (Ethereum) or collect NFT,” Gardner said.

NFT is a unique digital asset. Meanwhile, bitcoin is a redeemable token because it can be traded for a similar asset.

“In 2018, I was saying how NFTs would be the catalyst, or background, for crypto assets,” Gardner said. “I think the predictions were correct.”

Some NFTs consist of digital trading cards that include high-profile athletes. For example, DraftKings has been involved in the sale of NFTs, which includes iconic sports stars such as retired all-time NHL top scorer Wayne Gretzky, great golfer Tiger Woods, tennis star Naomi Osaka, NFL quarterback Tom Brady, and retired Olympic track and field legend Usain Bolt.

“Now you’re going to have (National Basketball Association), the NFL, you’re going to have great music artists all talking about NFTs, creating and releasing NFTs,” he said. “When that happens, especially when it starts to hydrate the world of gaming and esports, which is the fastest growing field of entertainment, what you end up getting is technology that is at the heart of the zeitgeist and is really where I think blockchain technology is today.”

Blockchain refers to a decentralized ledger system that serves as the backbone of crypto assets.

NFTs are expected to expand significantly

Other analysts also expect NFTs to expand significantly in 2022.

“NFTs will continue to integrate with existing organizations, and we may see big tech companies like Meta, Apple, Amazon or Google begin to integrate the metaverse with hardware products (augmented and virtual reality),” Block Research analyst Eric Tong wrote. “If not thisIt happens in 2022, and it will only continue to develop in the future.”

Fellow Block Research Analyst Jae Oh Sung predicts that NFT’s story “extends aggressively into the 2022 market with a mature business model from the music and sports entertainment industry.”

More gaming characters such as NFTs are also expected this year, but Block Research analysts are divided on how long the trend will last.

Either way, it will be one worth watching in 2022.

Read more: Ethereum Price Prediction for 2022 and Beyond: Will ETH Rebound?

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