What 2022 Will Bring For Cryptocurrency Investors

The first seven days of 2022 have not been kind to bitcoin, as the most famous cryptocurrency lost 11% of its value within days and finished this week at about $42,000; down almost 40% from its all-time high in 2021’s fall.

Other digital coins including ethereum and ripple also fell this week, down by 13.5% and 9%, respectively. That is par for the course in the ultra-volatile cryptocurrency market, with investors expecting the big swinging to remain in 2022.

The Federal Reserve’s hawkish hint at raising interest rates sooner than expected drove several investors to sell off their bitcoin holdings and turn toward safer havens.

Is it a part of the game?
Crypto investors will have to keep calm and hold their nerves while watching and analyzing with eyes wide open. 80% declines could be seen within a few months in a highly volatile market like the crypto market.
The majority of traders and investors looked upon 2021 as an action-packed year for of cryptocurrency. Bitcoin saw its price top out at $69,000 in November, while ethereum notched up a record high of $4,404 in October.

There were remarkable signals of cryptocurrency’s growing importance, a number of major retailers began accepting the currency as a trustworthy payment method. Some athletes, celebrities and politicians began receiving parts of their salary in crypto. At the same time, Wall Street created exchanged-traded funds around crypto futures. As the price of bitcoin, ethereum and others skyrocketed, crypto companies made splashy moves, Coinbase went public on the Nasdaq Index last April and Crypto.com aired a commercial featuring Hollywood star Matt Damon.

The biggest move was achieved by Crypto.com through buying the naming rights to the Staples Center in Los Angeles, and consequently renaming Crypto.com Stadium Arena in a deal amounting to USD 700 million.

High fluctuation is behind advice from business consultants to their clients to put no more than 5% of their portfolio in such a volatile asset. Some days an investor will see tremendous gains, but, still they have to get prepared for such sudden drops of more than 50% in a matter of a week.

Huge price will swing in crypto in 2022 just like last year. But, a segment of traders who started buying crypto last April, still plan to continue pouring more money into hex, bitcoin, solana and ethereum, noting that some of their bets have already doubled in value provided that consistency and steadiness could be maintained.