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

Trading Recommendations for the Cryptocurrency Market on April 4

Bitcoin and Ethereum were able to withstand significant pressure again, which was exerted on them yesterday in the latter part of the day following a substantial sell-off in the U.S

Miroslaw Bawulski 09:09 2025-04-04 UTC+2

Bitcoin again loses battle

Both Bitcoin and Ethereum asserted their strength for a while yesterday in the midst of the US session before Trump's statements and the introduction of tariffs. However, demand for risk

Jakub Novak 11:36 2025-04-03 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 3

Bitcoin and Ethereum rose even before Trump's decision and the announcement of trade tariffs, but pressure on risk assets increased significantly afterward. It's hard to say that the newly announced

Miroslaw Bawulski 09:02 2025-04-03 UTC+2

BTC/USD Analysis. April 2nd. Bitcoin Is Also Afraid of Trump's Tariffs

The wave pattern on the 4-hour BTC/USD chart is clear. After completing a bullish trend composed of five full waves, a downward corrective phase began, which is still in progress

Chin Zhao 12:17 2025-04-02 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 2

Bitcoin and Ethereum are holding their ground ahead of a major event that could reshape the global trading landscape. Another failed attempt by Bitcoin to settle above the $85,500 level

Miroslaw Bawulski 08:50 2025-04-02 UTC+2

Traders pause ahead of key event

Bitcoin's price has stabilized around the $83,000 mark as investors brace for a major announcement from US President Donald Trump on tariffs, expected to be made tomorrow. Other leading cryptocurrencies

Jakub Novak 10:44 2025-04-01 UTC+2

Trading tips for crypto market on April 1

Bitcoin and Ethereum have fallen in response to a further decline in the US stock market. Currently, BTC and ETH exhibit an obvious correlation with US stock indices. However, trading

Miroslaw Bawulski 09:31 2025-04-01 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 31

Bitcoin and Ethereum resumed their decline over the past weekend. There was no significant growth last week either, suggesting a continued correction in the crypto market. Ethereum was hit particularly

Miroslaw Bawulski 11:02 2025-03-31 UTC+2

Crypto market baffles traders

Recent news from the cryptocurrency market has discouraged investors. Over the past weekend, Bitcoin and Ether experienced sharp drops and failed to return to their upward trajectory, indicating a high

Jakub Novak 10:58 2025-03-31 UTC+2

Bitcoin – Technical Analysis Overview

Uncertainty currently dominates the market. Participants have taken a wait-and-see approach. The support of the monthly short-term trend at 79,773 and the weekly medium-term trend at 84,443 continue to influence

Evangelos Poulakis 09:07 2025-03-31 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.