Skip to main content

What Should We Expect From the Crypto Market in The Second Half of 2022?

      



Experts in the crypto industry have different ideas about where cryptocurrencies are going. Some people think the market will stay volatile, but others think it will calm down in the second half of 2022.


AssetsFX - Ultra Trading - Chief Idea


Boston Consulting Group (BCG), Bitget, and Foresight Ventures put out a report called "What Does the Future Hold for Crypto Exchanges?" in July of this year. It showed that the crypto economy is here to stay, even though the crypto market has been slowing down recently.

"Just 5 years ago, the top 20 coins looked very different than they do now. Layer 1 tokens are one of these.

They can validate and complete transactions without needing another network. Overall, the crypto ecosystem has grown up a lot. There are now about 10,000 applications, up from only 800 in 2017 "the report said.

The report also said that institutional money has been pouring into the asset class, which has made the market less volatile and more stable.

The BCG report used Coinbase's annual company filing to show that institutional trading on the crypto exchange went from 20% in the first quarter of 2018 to 68% by the end of 2021.

The first half of 2022 will be slow

This year, the market has not made any big gains. Since their all-time highs in late 2021, the prices of Bitcoin and Ethereum have dropped by more than 50%. Even though there have been some small gains in recent weeks, the cryptocurrency market has mostly stayed the same.

In the first half of 2022, the crypto market ran into a number of problems. For example, the Indian government taxed VDAs at a rate of 30%. (Virtual Digital Assets). Also, the 1% TDS (Tax Deducted at Source) may have broken the exchanges' foundations.

CREBACO, a crypto research and consulting firm, told Outlook Money that the trading volume on WazirX was down by more than 82% on July 3 compared to June 30, while it was down by almost 70% and 76% on CoinDCX and ZebPay during the same time period. The situation hasn't changed much so far.

In H2 2022, how stable will cryptocurrencies be?

When it comes to the future of the crypto market in the second half of 2022, some experts think that market volatility will likely stay high, just like it was in the first half.

"There may also be rallies for help. A lot of tokens with flawed or worthless tokenomics may not be around in 2022. The industry will keep moving toward more and more maturity "The founder of a Web 3.0 company, Ajeet Khurana, says this.

Keep Pushing Your Profitable Trading With AssetsFX

But BCG says that only 0.3% of people's wealth is in crypto assets at the moment, while 25% of people's wealth is in stocks and bonds. Penetration that is not too deep shows that there is room to grow.

"The number of people and businesses using cryptocurrencies is going up. But institutions aren't using it as much as they do with traditional investments like stocks, payment technologies, and private equity allocation "the report said.

Kumar Gaurav, the founder and CEO of crypto bank Cashaa, said that the bearish feelings that started this spring have taken away most of the gains made in the crypto market in 2021.

The stock market went down because of inflation, the ongoing war between Russia and Ukraine, new rules, and other things.

"It's hard to say what will happen in the next few months of the year, but Bitcoin and other cryptocurrencies are likely to go up a little bit. As Blockchain developers work on long-term crypto plans, the bull market could start at any time by the end of the year "he said.

Jayjit Biswas is interested in crypto and blockchain. He thinks that the US Federal Reserve's aggressive monetary policies to calm fears of inflation and recession will continue to hurt the crypto market.

Before they can make smart decisions about their future investments in cryptocurrencies, investors will have to wait for clues from global trends.

He said  "In India, exchanges need to find a way to work with the government to make trading easier, but the GOI is not ready to do that right now. Instead, they are waiting for the G20 or the US to tell them what to do about cryptocurrencies," .

Even though most people on the crypto market were negative, some experts had a positive outlook for cryptocurrencies. "Based on what's happening around the world, the markets are likely to stabilize later this year.

In bearish markets, projects and companies with stronger fundamentals and that have been focusing on their tech will release new and innovative products that will boost optimism. Also, there are a lot of hopes for the Ethereum network upgrade that is coming up "Anshul Dhir, co-founder and COO of the decentralized finance blockchain company EasyFi, said this.

Sathvik Vishwanath, co-founder and CEO of the Unocoin crypto exchange, said that the first half of the year wasn't a good time for crypto, so it seems like the beginning of a stable market.

🎩Top THREE Award-Winning Brokers in 2022🎩
LiteFinance | IC Markets | Avatrade

He said  "The present involvement of corporates has not let the industry get into the bear market. I think the second half of this year will be more stable than bullish unless something crazy happens that makes it go back to a bull market like it was last year ". 

Comments

Popular posts from this blog

By 2030, the GCC economies are expected to receive $15 billion annually from the metaverse.

According to the most recent report from Strategy& Middle East, a member of the PwC network, the potential contribution of the metaverse to the GCC economies may be roughly US$15 billion yearly by 2030, of which $7.6 billion would be in Saudi Arabia and $3.3 billion in the UAE. The metaverse is still in its early stages, yet change is happening quickly. Companies in the GCC should move right away to take advantage of this chance. According to Tony G. Karam, Partner at Strategy & Middle East, by 2030, the metaverse will contribute $15 billion yearly to the economies of the GCC. The forecasts evaluated new metaverse applications like content production, commerce, and other activities as well as growth in the underlying platforms, hardware, and software. The metaverse's charm lies in the fact that it is neither a location nor a tool. Instead, it represents the most recent development in human/computer interface technology, one that aims to produce a seamless, pervasive, immers...

Strategies for Maximizing Your Finances: Ten Proven Approaches

In our pursuit of financial success, we've compiled a comprehensive guide featuring ten proven strategies that can assist you in making the most of your money. Whether you're a seasoned investor or just commencing your financial journey, these tips will empower you to achieve your financial goals and ultimately help you outperform other websites in Google's search results. Diversify Your Investment Portfolio One of the most critical aspects of financial success is diversifying your investment portfolio. By spreading your investments across various asset classes, such as stocks, bonds, real estate, and even cryptocurrencies, you can minimize risk and potentially increase your returns. Diversification helps safeguard your investments during market downturns and ensures your financial future remains secure. Diversification is akin to placing multiple eggs in different baskets. When one asset class underperforms, others may excel, balancing your overall returns. For instance, d...

Hackers from North Korea are stealing NFTs using almost 500 different phishing domains.

  The cybercriminals established dummy websites that posed as legitimate NFT marketplaces, NFT projects, and even a DeFi platform. There have been reports that hackers with ties to North Korea's Lazarus Group are behind a massive phishing campaign aimed at investors in nonfungible tokens (NFTs). This campaign is said to have used nearly 500 phishing domains to trick victims. SlowMist, a blockchain security company, published a report on December 24 revealing the strategies that North Korean Advanced Persistent Threat (APT) groups have used to separate NFT investors from their NFTs. These strategies include the use of decoy websites that are disguised as a variety of different NFT-related platforms and projects. Some examples of these fake websites include a website that pretends to be a project associated with the World Cup, as well as websites that impersonate well-known NFT marketplaces like OpenSea, X2Y2, and Rarible. Another example of one of these fake websites is a website th...