Crypto

Is 2022 the end of cryptocurrencies?

2022! What a year it has been for cryptocurrencies, and we are halfway there. We assumed this would be the year the crypto landscape transformed for the better. Unfortunately, this was not the case. While we are still recovering from the catastrophic crypto crash, we cannot help but wonder about the following; Is 2022 the end of cryptocurrencies? If not, when will the crypto market rise in 2022?



To make the most of the situation and measure what is going on, we need to assess a meaningful indicator, and that is the fear and greed index. This is a tool to assess stock market fluctuations and determine whether stocks and upcoming crypto events in 2022 are priced right or not. The idea behind the hypothesis is that extreme fear tends to drive prices down, while excessive greed has the opposite effect.

Enthusiasts who have followed the markets for years can tell if investors give in to fear. Prabhdeep Singh, one of the enthusiasts and an optimist, stated: “Once retail investors start to experience loss, there is panic and a rush in the market. The rest follow the trail and shift the narrative entirely to fear. Investments are always risky, but every investment, whether it’s a dollar or a million, needs to be backed by thorough research.”

After the massive turmoil of Luna Terra and Bitcoin hitting $25K, speculative assumptions were circulating on the internet about how Bitcoin will eventually sink to zero, altcoins would be a hoax, and the market would be completely devoid of liquidity. Singh, being an avid investor since the early days of Bitcoin, has seen these waves in the market. According to him, fear captivates the market at regular intervals. Institutional investors who believe in the fundamentals would not budge. It is the fear instilled in retail investors that makes the market move.

In a recent IG session, when someone asked, will 2022 be the end of crypto, Singh stated that “this bear run could be the end for some fundamentally weak or overvalued cryptocurrency projects, but definitely not for major coins.” and fundamentally strong. Projects I can’t comment on any specific currency, but I truly believe that the technology behind cryptocurrencies, i.e. blockchain, will be the backbone of the internet and all businesses will sooner or later switch to it. Decentralization through blockchain would definitely prevail.”

So now you can go and start your research on projects or coins you are willing to invest in and make sure that the industry cannot die overnight. Yes, the road to recovery would be difficult. 2022 is clearly not the year crypto investors were hoping for. Furthermore, there is a very good chance that we may not see Bitcoin touch the $100K levels in 2022. However, the crypto markets are highly volatile and unpredictable at the same time. Charts are like lifelines; they can never just go in one direction. Ups and downs are inevitable; the people who are part of the big picture will remain, while the rest will be lost.

So if anyone ever raises a question, will 2022 be the end of crypto? What would you have to say?

Copyright © 2022 Khaleej Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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