Will Cryptocurrency Bounce Back in 2022? Here’s the Experts Opinion!
Economy MilkywayBlogs 29-Aug-2022 Comments (0) 42

Will Cryptocurrency Bounce Back in 2022? Here’s the Experts Opinion!

Crypto markets have witnessed massive corrections in the previous two months. Today, the global market cryptocurrency cap shrunk from $3 trillion to $949 billion. Weak global cues amid the heightened inflation and the rate of interest hikes led to the massive sell-off in cryptocurrency markets. Traders and investors are wondering whether crypto markets will bounce back this year again. Experts in the crypto industry have different views on it. 

Some experts believe that markets of cryptocurrency will bounce back from the crash in the next coming months, on the other hand, some other experts think that investor wariness will persist in the near-short term. 

“I think cryptocurrency will rise again strongly. By the end of December or in January 2023, Bitcoin crypto may rise to a high of $70,000,” said Dileep Seinberg, CEO and founder of MuffinPay, a utility token, and bill payment, told FE Online. 

“Few strong causes besides some geopolitical uncertainties are that Cryptocurrencies are becoming recognized because of their utility and purpose. The regulations of the Government are going to be the key drivers later in this year,” he also added. 

The correlation between the financial market and cryptocurrency is growing. Cryptos are responded to in tandem along with global financial markets that are hit due to the weak global cues. 

As inflation persists for two years, experts say that this imminent economic recession will remain to make cryptocurrencies markets fragile. 

“Given the correlation of crypto markets and equity, the macro-economic headwinds such as rising commodity prices and decade-high inflation adversely impact the whole crypto market. The US Federal Reserve shows an aggressive stance on tightening to tame inflation that will further aggravate the downtrend in cryptocurrency prices. Since the supply of money in the US has been growing at the rate of 18%, that is three times the growth rate, and the inflation will be around for more years that is transitory,” said Sharat Chandra. 

Rajagopal Menon, the Vice President at WazirX said that the inflation rate of crypto has been a major concern for global investors. In the US, it is at the height of 8.6 percent and 9 percent in the UK. 

“The interest rate hikes across the major crypto nations grow the concern as they lessen the liquidity. Both of these indicators led to a massive sell-off. In India, the central bank of India raised a full-year forecast for the consumer price index FY23 to 6.7 percent, which is more than the presumed target, and the Indian rupee hit a record of 78.28. Hence, investors adopted the stance of wait-and-watch as early indicators are shown in red. We expect the bearish market trend to persist in the near short term,” Vice President at WazirX, Rajagopal Menon. 

Final Words 

Cryptocurrency and other digital assets are completely unregulated in India. Thus, they are considered extremely risky for investment. It is advised you consult your financial advisor before making any investment in the crypto market. 

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