Where Crypto Are Headed And How Investors Can Sort Opportunities

Crypto Are Headed And How Investors Can Sort Opportunities

Just after being hit by the CORONAVIRUS pandemic, when the global economy was struggling, the Crypto space started to rise and started making new records. 

Let’s take the example of the most popular Cryptocurrency, Bitcoin. 

During the month of April 2020, the value price of Bitcoin was slightly more than $8,000. By the end of the year, the price value reached a new height of $20,000. Next year, 2021 started with a Bitcoin value price of around $30,000. 

By November 2021, Bitcoin made a world record with its highest ever price value, and that was more than $68,000. But this height was not at all stable, just like the previous instances. The price value started to decrease really soon. 

During the time of writing this article, the price value of Bitcoin was around $24,000. 

With all these rises and falls, the two most popular Crypto, Bitcoin, and Ethereum, have indeed proven resilient. Both institutional and retail investors are still showing their interest in the Crypto space. 

Especially after the global pandemic, a rapid rise in this interest has been seen. Also, a number of investors, who once were crazy about this Crypto space, have moved to some other venture after HODL-ing some Cryptos. 

At the same time, there are some investors who are digging deeper into this industry with the hope of becoming richer overnight, which is indeed possible. They are still spending significant hours on Crypto trading platforms like the bitcoin era

After witnessing all these, we only have one question in our head, where this Crypto industry is actually heading. 

Institutional Investors Are Getting Into The Game.

As per the trade figures, the number of individual investors in the Crypto space is going down. But right now, more institutional investors are climbing on board. And the rate of increment is pretty significant. 

In comparison to individual investors, institutional investors always allow for major bigger trading volumes. It means that even though the number of institutional investors who are transacting in the Cryptocurrency space is less, it is still can sustain. 

A number of potential developments have already taken place in the last couple of years. And the experts are also predicting some bigger projects to take over the Crypto space. 

The Elusive Bitcoin ETF

For a number of years, Crypto fans have pined for a digital currency ETF to be available for mainstream investors in the United States. 

But the SEC or U.S. The Securities and Exchange Commission has repeatedly delayed or rejected Bitcoin ETF applications to be resolved on a future date. 

A group of analysts thinks that the particular approval of a mainstream Bitcoin ETF can offer a significant jolt to the Cryptocurrency space. This will open the doors for those investors who are interested in this market but afraid of taking risks associated with the Crypto market. 

The future of buying and selling tokens is yet to come, and Crypto fans are eagerly waiting for that. 

Stablecoins Are Taking The Lead

Stable coins are also a form of digital tokens, but they are backed by a fiat currency, which acts as a hedging mechanism against the potential decline of all those underlying Crypto collateral prices. 

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In the recent future, it might be the best hope for the Crypto industry.  

In the next couple of years, it is predicted that the global market will witness a growth of Stablecoins. And two main reasons are going to work here. 

  • To be honest, all those non-centralized tokens do not provide long-term stability at all. 
  • The present leader is the Stablecoin space; Tether is positioned to be dethroned. 

Tether is among the earliest Stablecoins that managed to reach the mainstream. It suffered several highly publicized growing pains when the sub-industry was developing. In the meantime, a number of other Stablecoins have already entered the field. 

And they are also aiming to rule the industry. 

How Investors Can Sort Opportunities

Right now, when the price value of the most popular and also the most efficient Cryptocurrency, Bitcoin, is at a lower grace, you can think of buying some and HODL for a while. 

Just by the way, the price has jumped from $8,000 to $68,000, and that too within less than 2 years, you might not know what this space has for you in the later years. 

But when you are investing, you need to ensure you have the proper market knowledge and follow a strategy. 

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