FX.co ★ Crypto 2022: clarity in the regulation will provoke a new wave of money next year

Analysts said that another favorable year will follow the record growth of the cryptocurrency in 2021. A new wave of money, which is still on the sidelines, can be expected as the rules regarding cryptocurrency become clearer.

The world's largest cryptocurrency Bitcoin reached a lot of achievements this year: new records, wider adoption, legal tender adoption in El Salvador, the first Bitcoin ETF, and the Taproot update that increased the number of transactions that could fit into a Bitcoin block.

In terms of trading, the total cryptocurrency market capitalization has surpassed the $ 3 trillion mark this year as Bitcoin hit a new all-time high of $ 69,000.

Meanwhile, Ethereum, the second-largest cryptocurrency in the world, surged to a new all-time high of $ 4,878 in November.

Even US Securities and Exchange Commission Chairman Gary Gensler and Fed Chairman Jerome Powell have publicly stated that they will not ban cryptocurrency in the United States.

Another major milestone for bitcoin was that 90% of all Bitcoin had already been mined as of December 13th. This is proven by data from Blockchain.com. This means that out of 21 million bitcoins, 18.89 million are currently on the market.

It took a little over ten years to reach this figure, but it will take another 120 years to mine the last 10% due to the estimated schedule of halving Bitcoin.

Bitcoin was trading at $ 0.10 in 2010 and then it rose to $ 7.50 at the end of 2012. In 2013, it exceeded $ 1,000. In 2017, it grew to almost $ 20,000. This year, it also grew to $ 69,000.

Let's consider the forecasts:

Looking ahead to 2022, many analysts have identified $100,000 as Bitcoin's next target.

According to LQwD CEO and co-founder Shone Anstey, Bitcoin's forecast for 2022 is over $ 100,000, with the next breakthrough coming in the first quarter of next year. An important driver for that will be the ETF's approval of the bitcoin spot price.

Analysts said that increased regulation in this area is inevitable next year. New laws and some clarity from the SEC are good for the crypto space.

Many large institutional players, including pension funds, have been waiting for regulatory clarity before getting involved with cryptocurrency.

According to Alkesh Shah, a cryptocurrency and digital assets strategist at Bank of America, regulation will be the next inflection point in the digital asset space.