empty
10.01.2022 11:24 PM
Bitcoin and Ethereum are set to take off in 2022 for 3 reasons

This image is no longer relevant

Cryptocurrencies are the pinnacle of the financial revolution, where people can use their personal funds without fear of government intervention or a tsunami of inflation. There is fear, panic in the market, and you can watch a bloodbath on the eve of the beginning of the new year. Today bitcoin fell to $39,500, but there are three reasons why bitcoin and Ethereum may turn around and move into an upward trend in the very near future.

To date, bitcoin and Ethereum are far from their record highs and have already suffered huge losses in the first 10 days of 2022. In view of the panic in the market, investors liquidate their positions and sell off assets.

In 2021, bitcoin had an increase of almost 60%, and Ethereum almost 400%. However, do not be afraid of the picture that is currently being observed on the market. Many whales still continue to accumulate.

The coming global inflation

The first reason is the terrible global inflation. Federal funds rates are projected to rise to 0.9% this year and up to 1.6% in 2023, which is a very negative indicator for the global economy. Bitcoin and Ethereum are the main hedge assets of the entire crypto market against inflation, and most likely, when incredibly terrible inflation comes this year, which will devalue fiat funds and hit the global economy, people will switch to cryptocurrency.

Ethereum and bitcoin will remain top priorities, as people no longer want to trust the government, the national currency, but want to act directly without outside interference.

Complete distrust of fiat funds

The second reason is one hundred percent distrust of fiat currencies. Fiat currencies remain on the radar and retain their significance only because the government gives them this imaginary credit of trust and one hundred percent faith. Distrust of the dollar will be the reason why people will come to the stock market or cryptocurrencies.

Mass adaptation of cryptocurrencies

The third reason is the mass adaptation and worldwide recognition of cryptocurrencies. With each new day, more and more people on the planet are learning about cryptocurrencies, and more and more corporations or ordinary citizens are buying their first cryptocurrencies into their portfolio. The world is completely digitalized and goes online.

Faith in banks is drying up, and in cryptocurrencies is increasing. This year, the famous billionaire and former Twitter manager, Jack Dorsey completely switched to bitcoin and left his post.

His company Square will continue to develop on bitcoin. He said that bitcoin will completely unite the whole world. The main risks for cryptocurrencies remain government interference, strict regulations and bans. However, this will not be able to leave its mark on bitcoin and Ethereum

Vitaly Kolesnikov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Ethereum Crashed. Bitcoin Was Less Affected

Despite the successful rollout of the Pectra test upgrade on the new Hoodi testnet—potentially the final step before rolling out the update to the Ethereum main net aimed at improving

Jakub Novak 08:01 2025-03-28 UTC+2

Trading tips for crypto market on March 28

Bitcoin and Ethereum are struggling to stay afloat. Another failed attempt by Bitcoin to cling to $88,000 led to its sell-off during today's Asian trading session. Ethereum had even worse

Miroslaw Bawulski 07:34 2025-03-28 UTC+2

Trading tips on crypto market on March 27 (North American session)

Bitcoin didn't show anything interesting in the first half of the day. Only Ethereum could be traded a bit within its sideways channel, in which it is still trapped. Meanwhile

Miroslaw Bawulski 15:16 2025-03-27 UTC+2

US crypto regulation bill moves ahead rapidly

US lawmakers are moving swiftly on legislation aimed at regulating digital assets. Votes on a stablecoin bill and a revised version of the broader cryptocurrency market structure bill are expected

Jakub Novak 10:52 2025-03-27 UTC+2

BTC/USD Analysis. March 27th. Bitcoin lacks growth potential

The wave structure on the 4-hour chart of BTC/USD is quite clear. After completing a bullish trend composed of five full waves, a corrective downward phase has begun, currently taking

Chin Zhao 08:31 2025-03-27 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 27

Bitcoin and Ethereum are facing challenges in maintaining their upward momentum. However, this appears to be more of a reaction to Donald Trump's latest political statements—which have

Miroslaw Bawulski 08:06 2025-03-27 UTC+2

Technical Analysis of Intraday Price Movement of Filecoin Cryptocurrency, Thursday March 27, 2025.

By successfully breaking below the lower line of the Rising Wedge channel of the Filecoin cryptocurrency on its 4-hour chart and its price movement is now stuck

Arief Makmur 06:55 2025-03-27 UTC+2

Technical Analysis of Intraday Price Movement of Ethereum Cryptocurrency, Thursday March 27, 2025.

If in the next few days there is no significant strengthening, especially if it breaks through and closes above the level of 2549.05 on the daily chart of the Ethereum

Arief Makmur 06:36 2025-03-27 UTC+2

Bitcoin hovering before spike above $90,000

While you're mulling over whether to buy Bitcoin or not, the world's largest asset management leader, BlackRock, is actively increasing its ETH holdings for its tokenized fund, BUIDL. This move

Jakub Novak 09:39 2025-03-26 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 26

Bitcoin and Ethereum continue to show active growth but face challenges in overcoming major resistance levels. Yesterday, Bitcoin pulled back after reaching $88,400 and is currently trading around $87,600. Ethereum

Miroslaw Bawulski 08:22 2025-03-26 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.