The recent 2 years were very dramatic and tense for the cryptocurrency industry as well as for those who invested in different digital currencies. Everything started in 2019-2020 but mostly during the period of the pandemic when people were massively forced to create another expected financial world in the online space, because of global regulations. This was the key reason why trading with different cryptos quickly became very popular. So, is crypto making a comeback?
More specifically, during the pandemic and especially in the third quarter of 2021, the prices of most common digital currencies historically increased. Those who bought some coins in spring 2021 at a very low price increased their profits significantly and immediately. After the peak of November, more and more people were interested in crypto trading. They started investing more money and purchasing different currencies with the hope that they would get a great number of profits very soon.
Everything was going perfect until February of 2022 when the massive reduction of each digital currency started. If the price was over 60,000 USD in autumn, at the beginning of 2022, the prices were under 25,000 USD.
The situation lasted for a long period. The prices were decreasing during the spring season. The significant reduction was revealed in the summer when Bitcoin prices were about 20,000 USD. So, many investors faced enormous losses.
But, according to the current situation, some crypto market experts claim that these 6-month negative experiences may change positively and we may face a great comeback of cryptocurrencies. To not give you fake promises, in this article, we will discuss probable scenarios for the nearest future which will be based on expert analysis. So, all you will get from the discussion is the real probable picture of the crypto market.
The Current Situation On The Crypto Market
Even though from the first months of 2022 the cryptocurrency market faced enormous problems, a lot of people are still interested in trading with digital currencies. They still actively invest money with the hope that the current situation will improve soon.
The main reason why predictions massively changed in a positive way was rising in the Bitcoin price. The lowest price in June, around 20,000 USD, scared all investors but recently increased to about 24,000 USD. The recent two months were not only good for Bitcoin but also for Ethereum and other digital currencies. This made experts, as well as traders, think that the worst and lowest period of the crypto market is ending.
During the last two months, the current two-week period was the most important period because during these days the total price rose by 15% for Bitcoin. The bigger increase revealed the second most popular digital, Ethereum where the price increased by 35%.
Also, due to low (or even negative) interest rates for major fiat currencies, many people started considering cryptocurrencies as a viable investment due to their staking features that allow receiving certain returns on the cryptocurrency balance that one holds.
These instant positive changes do not mean that the volatility is low. On the contrary, as experts say, the risk is still high because, after the February decrease, we always should expect a high fluctuation in the crypto market. So, as they say, the current situation will be exciting if the recent results last during the autumn.
What Are The Main Predictions About Crypto Market?
The main prediction which is quite realistic is that traders should expect significantly increased volatility. It will not be stable for a few periods because there are many influential massive factors that determine the changes in crypto prices. So before you start investing in any kind of digital currency, make sure that you and your resources are ready for big fluctuations and high volatility.
Also, there are expected new regulations and changed global politics of banks that provide crypto loans. The implementation of these changes will be new safety requirements. Because of increased interest and traders, the facts of scam apps and platforms were raised too. So, stricter regulations will be partly affected on the movements of the investors as well as brokers.
In addition, as experts say, we can expect that the global inflation rate will decrease significantly but not disappear at all. If you are not new to the crypto market, you will know how influential global inflation is for the crypto market. The results of June make the significant reduction more realistic in the future months.
The most potential cryptocurrencies which will probably have a great comeback at the end of 2022 are Bitcoin, Ethereum, and Dogecoin. Before this negative trend, these digital currencies were one of the top cryptos on the market. The demand for them is still high. In addition, crypto market researchers expect a positive change in Chain Link, Shiba Inu, and Ripple prices.