The Bitcoin price has been mixed throughout the weekend as sentiment remains divided on whether or not it will have a future use case. Will it be able to break out of its current trading range? With BTC at $11,624 and ETH fluctuating between 0.02900-0.03000, most altcoins are also struggling this week before the market recovers next week.
The “why ethereum is going down today 2021” is a question that has been asked for quite some time. The cryptocurrency market seems to be divided on the future use cases of Ethereum.
With the calamity of 2021 behind them, investors are now looking forward to what 2022 has in store for Bitcoin and the whole digital asset market. Despite significant improvement, there is still some uncertainty in the market. Recent criticism has confirmed this, as BTC tries to determine whether to continue sliding or increase once again.
To go ahead, we must first take a glance back to 2021 to see what Bitcoin has become. Not only did widespread acceptance begin to spread from retail to institutional investors, but a key narrative persisted: Bitcoin will continue to overtake Gold as the preferred inflation hedge. While Bitcoin is not as stable as Gold at present moment, investors, particularly younger generations, remain optimistic that this will change. Bitcoin has all of the characteristics for this to happen, with its fixed supply, rising demand, and transparent nature.
In a recent interview with CNBC, Jeremey Siegel, a Finance Professor at PENN’s Wharton School, expressed this perspective. “Bitcoin has supplanted gold as an inflation hedge in the views of many younger investors,” he says. For millennials, digital currencies are the new gold.”
While younger generations may remain more receptive to digital assets, development in 2021 was insufficient to persuade many older generations to change their views. In an article for The Globe and Mail, George Athanassakos, a professor of finance at the University of Western Ontario, demonstrated this. He cites the following issues as grounds for what he feels will eventually lead to BTC’s downfall.
- Arrival of new legislation
- Lack of market correlation (BTC cannot be used as a hedge)
- There are no physical use-cases.
- Failure to operate as a medium of exchange
When looking back at 2021, it’s evident that there’s still a lot of work to be done. Yes, there has been improvement, but many people remain skeptical about Bitcoin’s other digital assets’ long-term sustainability.
A Look Ahead
So, what will digital assets look like in 2022? El Salvador’s President, Nayib Bukele, tweeted his forecasts.
While some of these projections may seem too optimistic, the great majority of experts believe that digital assets will have a favorable year. Yes, there will be periods of uncertainty that result in downsides, but the general trend should remain positive.
Metrics & Market Reaction
Although there were fleeting glimpses of a possible rally leading into this past weekend, the days that followed were mostly uneventful in terms of price and attitude. Fundamentals like as hash rate and market dominance, on the other hand, are continuing their previous patterns.
As previously indicated, BTC had a short period of turbulence on New Year’s Eve before settling into a routine weekend that saw the top digital asset depart at the same price it arrived at – about $47,000.
Strength of the Network
Despite the recent price decline, the Bitcoin network’s strength continues to grow, with hashing power approaching all-time highs. With the network completely recovered from the miners’ departure by mid-2021, the future year should witness consistent upward pressure, which will continue this story.
Dominance in the Market
While Bitcoin remains the most popular digital asset, its market dominance has fallen somewhat due to the sector’s expanding popularity. This proportion dropped from approximately 70% in 2021 to just under 40% now, an all-time low.
The last time BTC supremacy neared these levels was in mid-May, in the middle of the year’s most severe market collapse. BTC continued to reclaim market share in the months that followed, setting new highs along the way. Investors will be wondering if these activities will repeat themselves in 2022, or whether alt-coins will continue to exert pressure on BTC.
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The “crypto bubble meaning” is a question that many people are asking right now. The cryptocurrency market has been on the rise for some time, but it seems like there’s still disagreement about what the future holds for cryptocurrencies.
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