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The first quarter of the year is over, and major cryptocurrencies are already beginning to show signs of going up again. Also, there might be a few new entries to watch out for in mid-2022 as well. Let’s quickly go through the data we have on crypto trends for the next two quarters.
Bitcoin Rising Again?
By now, anyone familiar with crypto trading should know that despite all the extreme volatility that the first cryptocurrency is associated with, bitcoin is always going to come back stronger, be it sooner or later. After the slump of March, bitcoin has started going back up again in April and it’s a trend which is not likely to take a long and steep nosedive for months to come.
Although there are no reliable data regarding when or if bitcoin will break through the $65,000 barrier between Q2 – Q4, 2022, now is probably the best time to invest in the cryptocurrency. This is because predictive analysis suggests the price of bitcoin may not get any lower in 2022 than it is right now. if you are thinking about investing in cryptocurrency this year, you should start investing in bitcoin before its price starts to skyrocket in a manner that has become typical of BTC.
NFTs will Gain More Momentum
Non fungible tokens, or NFTs, have less to do with cryptocurrency and everything to do with blockchain technology. Like the term non fungible itself suggests, they are not currencies that can be exchanged as such; they are more akin to collectible assets of limited appeal but immense financial value. In brief, an NFT is a digital token created with blockchain technology to sell/own digital content.
It could be an entire collection or just one piece of digital art, photo, message, social media post, rare game, GIF, etc. Ironically, the only common aspect shared by all non-fungible tokens is that each valuable NFT is, by default, unique. After The First 5,000 Days by Mike Winkleman (Beeple) was bought for close to a whopping $69.35 million followed by Jack Dorsey’s $2.9 million First Tweet in March 2021, everyone knew that NFT is a crypto trend that is only going to grow bigger in 2022.
Greater Government Involvement
More nations may start legalizing cryptocurrencies from Q2 2022 onwards, while some will take the same route as China. Irrespective of which side a national government may lean towards, rest assured they are going to get a lot more involved in crypto trade regulations than before.
As for crypto traders in United States, not much is likely to affect them negatively, given that the US government has no reason to make drastic changes to the crypto market right now. As a rule, the more authoritarian a nation’s government is, the less likely they are going to be happy about decentralized currencies!
Finally, it is estimated that several new fraudulent cryptocurrencies will be introduced in 2022. Just like the fraudulent BitConnect (BCC), they too are likely going to be based on pyramid schemes. Stick to tried and tested cryptocurrencies and only invest in a new coin if you can verify its origins beyond doubt.
