How Did the Crypto Market Change in 2021 and What to Predict in 2022?

Sharing is Caring!

2021 was a great year for cryptocurrencies. Prices of the majority of the cryptos climbed over the last year, some of them reaching all-time highs twice. 2021 was truly amazing for the crypto industry. 

Almost all cryptocurrencies in the industry saw massive gains throughout the year, and although the market was very volatile, long-term investors saw great gains. While the year was successful for almost all cryptocurrencies, some of them saw massive gains. For example, bitcoin managed to have one of the best years in its history. 

The cryptocurrency managed to record two all-time highs during the year. First, the price of BTC reached almost $64,000 in May and over $68,000 in November. Bitcoin managed to continue its reign as the top crypto asset by market capitalization in 2021. 

Although the price of the cryptocurrency also saw massive price falls throughout the year, it still managed to have a great performance. The price of BTC at the beginning of the year was around $29,200, at the time of writing, it is about $49,000, showing an increase of over 68 percent. 

The prices of other cryptocurrencies also managed to increase dramatically. For example, Binance Coin had an increase of almost 1300 percent, from just $38 at the beginning of the year to over $540 near the middle of December 2021. Ethereum had a very successful year as well. The price of ether at the beginning of the year was just $730, breaking over $4,000 in December. 

Developments Around the World

2021 was very important for the crypto industry not only because of the amazing price-performance but general developments as well. 2021 brought the first country to adopt BTC as a legal tender, El Salvador. 

This was a huge thing for not only bitcoin but the whole crypto industry as well. Ethereum 2.0 was also a very important thing, taking the crypto industry to new heights. 

While the majority of the countries globally took several steps to become more friendly towards crypto, others decided to take a different approach. For example, the Chinese crypto crackdown continued this year as well, causing numerous issues in the market. 

First, the government of China announced that they were adopting restrictions on crypto mining. This was devastating news for the market, as numerous miners were based in China. This was followed by another wave of restrictions in China, which has ended up restricting any type of crypto transactions in the country. 

However, even such developments were not enough to get in the way of crypto popularity. People around the world showed massive interest in the market. 

See also  And there you have it, the market is now pricing that Fed Funds will be at 100bp, by end-2022.

Crypto exchanges globally saw dramatic increases in terms of their user base. Throughout the year, people of all different backgrounds and interests were able to find ways to invest in the cryptocurrency market. 

Even those who simply do not have enough time to sit in front of their screens, analyzing and trading cryptocurrencies, had the opportunity to start trading thanks to crypto trading robots. Automated trading has become very popular in different parts of the world, offering individuals the opportunity to go on with their lives while making additional income from crypto trading.

Automated trading cryptocurrency is a great option for individuals who want to become part of the market but simply do not have enough time to analyze the market or trade cryptocurrencies. Crypto trading robots can do the market analysis in a shorter time and can also be used for automated the whole process of trading.

Crypto Industry in 2022 – Main Predictions

Numerous market experts have made different types of predictions for the upcoming year. The majority of these predictions are very much positive for the whole crypto industry in 2022. 

One of the largest media outlets, CNBC, did a survey among millennial millionaires and found that the majority of them are planning to add more cryptos to their investment portfolios in the upcoming year. 

The past year has seen a massive increase in terms of crypto investments, and it seems to be having the same trend in the upcoming year. The survey showed that as much as 83 percent of millennial millionaires already own cryptocurrencies, and the number is going to increase in 2022. 

While there are many experts who believe that the crypto industry will continue its massive growth in the upcoming year, there are others who think that this might not be the same. Some of the market experts believe that some of the cryptocurrencies will see some drop in prices, at the same time, many of them say that the prices might be a bit stable, as the crypto industry is maturing very fast. 

Many countries around the world have already come forward with regulatory frameworks for the crypto industry and it is said that the same trend will continue in the upcoming year as well. While it is very much unclear what the regulations will look like, adopting them might make it easier for individual investors to decide where to put their money. 

Best Ways to Invest in Cryptos in 2022

All in all, the majority of the predictions for the upcoming year seem to be positive for the crypto industry. But, what is the best way to invest in cryptocurrencies? 

There are some things that retail, as well as professional investors, should keep in mind when dealing with cryptocurrencies. The main thing is that cryptos are very volatile and it is very important to understand this volatility before you invest. 

Cryptocurrencies can be a great addition to your trading portfolio as they can further diversify it. Many investors are using cryptocurrencies to ensure they have a successful trading portfolio. 

The first thing to do to understand which type of trading is better for you is to ensure you know what type of profits you want to be making. For example, if you are focused on making quick and small profits, you should use short-term strategies such as day trading or scalping.

On the other hand, you can also invest in cryptocurrencies long-term, buying the assets when the price is low and holding them in hopes of future price growth. This is a very popular strategy among crypto traders in the market. 

Crypto trading has seen massive developments in 2021. As a result of the events that took place throughout the year, there are more people than ever before who view cryptocurrencies as a legit and serious form of investment. 

This can play a huge role in the future development of the crypto industry. Considering how things went in 2021, it is logical to believe that 2022 will be a very successful year for the crypto trading industry.

Disclaimer: This content does not necessarily represent the views of IWB.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.