Crypto Predictions and Market Analysis for Q2 2022
Get the lowdown on all the best crypto trends this year. We bring you an overview of the hottest crypto forecasts for 2022, from NFTs to Bitcoin and Ethereum predictions.
Crypto Forecasts 2nd Quarter 2022
The year 2021 was remarkable, with many new altcoins challenging the dominance of established coins like Ethereum. NFTs became more mainstream, and several coins reached all-time highs, with the total crypto market cap peaking at $3 trillion in November. But just two months later, over $1.2 trillion was wiped out in a 40% overall market cap plummet. Nevertheless, opportunities abound for traders to buy the dip and catch the uptrend of different coins. But with this recent exhibition of cryptocurrency volatility, new investors are likely to be unsure. Admittedly, even some experts have had their confidence shaken and can’t be brought out to make public crypto forecasts 2022.
If you’re looking to invest in crypto in the 2nd quarter of 2022, we have accurate crypto predictions to get you started on the right note. Moreover, some of these trends are expected to continue well into the year’s second
half.
Following Crypto Trends and Predictions
A vital asset in every successful crypto trader’s toolbox is the ability to read market data and identify specific trends. Comprehensive market research includes statistics and evaluations from numerous credible sources. Charts, graphs, and price predictions can overwhelm you if you’re new to the crypt market. Fortunately, because many experts make relatively accurate predictions, not every trader has to run the numbers every time they want to make a trade. Instead, you only need to know the best sources of the most current information. But it’s not a matter of blindly acting based on what others think and say will be the next cryptocurrency to explode in 2022.
It's worth getting a bit familiar with how crypto markets work so you understand and keep up with expert crypto trend analysis when you monitor the rise and fall of different cryptocurrencies.
Bitcoin Predictions to Watch out for in 2022
In the last quarter of 2021, many crypto forecasts for 2022 predicted that Bitcoin would hit the $100,000 mark by early January. But ever since BTC started falling in early November, the crypto price forecast game has gotten
a lot trickier. On one side, skeptics predict that Bitcoin will continue to fall to as low as $10,000. But some experts still have faith in the biggest cryptocurrency and think the $100,000 price is attainable, but just on a more
extended timeline. The most trusted voices in the crypto space say BTC will continue to be volatile in the short term but will keep growing long-term. That’s especially true if regulations move in the right direction and large financial institutions keep adding crypto assets onto their balance sheets.
BTC Price and What Influences It
Just like with fiat currencies, the price of Bitcoin is influenced by supply and demand, government policy, public sentiment, market events, news, and several other factors. But unlike fiat currencies, Bitcoin minting is designed
to stop at 21 million. Therefore, as the supply is fixed and demand increases, the price of BTC will likely go up.
Another factor influencing the BTC price is its popularity, especially with new traders. If the rate at which crypto technology is being adopted endures, the value of Bitcoin could move up. On the other hand, regulators worldwide are paying attention to crypto, and tighter controls could create a negative crypto price forecast.
Mining cycles mean that the reward for processing BTC transactions gets cut in half after specific periods. As the rate at which new coins enter the market slows down, halving events influence the Bitcoin price.
Ethereum Generates Momentum
Ethereum is the most dominant altcoin, making its crypto forecasts 2022 some of the most sought-after. Since its creation in 2015, ETH has increased in value from $0.311 to $4,800 at its peak. In early 2022, the prices dropped
to around $3,000. Unlike Bitcoin, Ethereum has real-world utility as a network that facilitates the development of apps, tools, and NFTs. The altcoin also has applications in the music, entertainment, decentralized finance (DeFi), and gaming world. In normal circumstances, ETH would have the best crypto forecast right now. But because the altcoin is transitioning to Ethereum 2.0 to make it less energy-intensive, its value will continue to be volatile. The response of investors and other partners will determine how ETH will fare after the coming changes.
ETH Price Jump
Experts predicted that Ethereum would finish 2021 at around $7,00 if it had remained on the upswing it was on in mid-2021. Instead, however, the altcoin fell 40% to below $3,000. But if you were an active trader in the 2018 crypto winter, you would know that ETH rose to $1,400, only to fall below $200 in the subsequent months. The same dynamics may be at play here. But with the impending release of Ethereum 2.0, crypto forecasts 2022 are
significantly stacked in ETH’s favor. Upcoming upgrades will likely lower service fees and jump-start the altcoin’s
value above the previous highs. Expert crypto forecast predictions tip Ethereum to hit $5,000 in 2022 and $10,000 in the next two or three years.
The Fate of Meme Coins
Meme coins like Shibu Inu coin (SHIB), Dogecoin (DOGE), and Mona coin (MONA) started becoming increasingly popular with the rise of NFTs and altcoins. These coins, however, don’t have a market cap and are easy to come by, making them significantly cheap. The relatively more widespread availability means other factors need to come into play to turn the tides for each coin. Meme coin communities help promote the coin to make it viral, get new investors on board, and drive up the price. As such, crypto forecasts 2022 for each meme coin lie in the ability of its community to create and maintain relevance. But while these factors can exponentially grow a meme coin’s value, solid fundamentals and a clear vision are must-haves for these altcoins to stay on top.
NFTs are (not) Art
In many ways, NFTs have provided an alternative avenue for artists to reach collectors and other prospective customers without going through traditional gatekeepers. At their core, NFTs are tamperproof certificates.
They can represent a physical or digital asset, including documents, land, Ips - or art. Admittedly, art can be an NFT, but not all NFTs are art. To the disappointment of many artists, a recent vote by Wikipedia editors decided
not to classify an NFT art piece as art. Art may very well be in the eye of the beholder, and collectors may spend millions on NFTs. But even when the jury is still out, NFTs are currently not viewed as art.
Cryptocurrency Under the Watchful Eye of Regulators
The crypto industry has enjoyed sitting in regulatory no man's land for quite a while. Since it was unclear which rules applied, creators and traders had free rein to move as they pleased. But times are changing, and crypto trends are at a crossroads. For example, in the US, FinCEN recently proposed rules to verify the identities of every crypto transaction above $3,000. These rules aim to track and thwart cybercrime and criminal transactions.
However, similar posturing by governments to enact restrictive regulations has dampened crypto forecasts 2022. So, it’s when and not if - experts wait with bated breaths to analyze and react to upcoming regulatory changes.
Closing Thoughts
The total crypto market cap peaked at $3 trillion in November 2021. At the time, Bitcoin was slated to reach $100,000 and Ethereum $6,000 early this year. These crypto forecasts 2022 couldn’t have been more wrong, as the market cap eventually plummeted 40% and wiped off $1.2 trillion from the market. It remains to be seen if this is just the beginning of another crypto winter or if the market will bounce back in the 2nd quarter of 2022. Overall, crypto demand seems to rise as more altcoins find real-world utility. For example, the BNB crypto forecast looks bright, as Binance continues to play a vital role for those looking to trade crypto. Corporations seeking to have crypto on their balance sheets will likely drive prices up. Furthermore, the jury is still out on whether NFTs are art, and meme coins may have to do more than create viral hype to remain relevant.
