The Future Trends of Bitcoin and Other Cryptocurrencies
Cryptocurrency prices, including Bitcoins, are highly volatile. They are sometimes moving upwards, and the price graph is sometimes sloping down. One can gain much as well as become a pauper overnight. People had apathy towards cryptocurrencies during the initial phases, but their interest grew slowly as cryptos turned to give huge profits to many investors. If you are interested in trading bitcoins, you must use a reputable platform that will help you gain profit like Crypto Genius.
However, during their journey, they saw high and low ebbs. A year ago, Bitcoin and other cryptocurrency prices were skyrocketing. However, they are being brutally hammered this year due to various adverse geopolitical and economic conditions throughout the world.
Many financial experts believe that cryptocurrencies will die in the future, and again, many others believe they have a bright future. Economic pundits are divided on their opinions. But, as a probable investor, the picture is not all that gloomy. So, it is time to introspect about the future trends of Bitcoins and other cryptocurrencies before you make any investment in this alternative digital mode of investment. Let us discuss the subject in detail.
The Research by Experts
As per research by experts, the cryptocurrency market size was valued at $ 1.49 billion in 2020. After analyzing the compound annual growth rate or the CAGR of past years, the financial experts predicted cryptos to grow at 12.8% between 2021 and 2030. That means it can become $4.94 billion in 2030. A couple of years ago, things were moving over their predictions, and investors were reaping huge profits.
However, in recent years inflation touched a new high globally, with Russia and Ukraine wars. The federal bank had to raise the interest rate to stabilize the US economy, which was bleeding. Suddenly cryptocurrencies started to get hammered down, and investors were wary about the future. However, slowly they are again turning positive.
- The Market Will Stay Volatile For Some Time- With the present economic scenario across the globe, the cryptocurrency market will remain volatile for months or years. Bitcoin, the most sought-after cryptocurrency, was trading at $5000 in March 2020. The price rose to $65000 in November 2021, and today, in May 2022 it is trading at around $30,000.
Similarly, the next most sought-after cryptocurrency Ethereum traded at $125 in March 2020, $4,800 in November 2021, and today, in May 2022 it is around $2,000.
So we can see the volatility of the market. However, early investors are gaining despite high volatility, while investors who jumped the bandwagon after November 2021 are bleeding profusely.
- The World Economic Scenario Will Change – The recession was in 1994, but the world economy bounced back, although it took around ten years. Thus, financial experts predict that today’s world economy will change and show positive movement. Countries will fight recession, reduce the inflation rate, and the markets will bounce back. Thus, as per their predictions, cryptocurrencies will also jump to a new high. It is going through the testing waters now as they are newly introduced to the conventional economic scenario. But, more and more payment gateways accept Bitcoins and other cryptocurrencies for big purchases. It indicates that cryptocurrencies are here to stay. One needs to invest judiciously.
- Time To Invest – Inflation affects the fiat currency and can eat away the pie of the investor’s profits. Though the trading volumes may be low, inflation doesn’t have a direct impact on cryptocurrencies. Like the stock market, cryptocurrency markets are going under market corrections. Many experts consider it is the right time to invest in them. Because this is the basic strategy of investment that one should invest in cryptocurrencies when their prices are low.
However, one needs to invest judiciously. One should open an account in one of the best trading platforms to do transactions for commodities with cryptos or to build a financial portfolio.
The Future Trends
When the wealthiest of the world like Elon Musk, Changpeng Zhao or Sam Bankman-Fried, or others are taking an interest in cryptocurrencies and investing in billions, the future of Bitcoin and other cryptos is not that gloomy, and they are going to fight the market odds.
Although Bitcoins and other cryptocurrencies are bleeding now, they are predicted to grow faster than the price of gold. One needs to select the best trading platform dealing with various cryptos and allowing investors to use them in payment gateways. One should never expect Bitcoins to reach an all-time low, but they are going through market corrections now, and it is time to invest and wait for the long term to reap the benefits.
To Read Our Exclusive Content, Sign up Now.