Cryptozyme is near: the cryptocurrency market is in an alarming situation
Former Bitcoin.com CEO Stefan Rust believes that another crypto winter awaits us in 2022.
Bitcoin has fallen in recent days below its 200-day moving average (200-DMA), currently passing around $47,700.
This line is an important indicator for large investors, which became a symbol of the crypto-winter of 2018. And it can become an insurmountable resistance for the growth of cryptocurrency in 2022, writes cryptor. Crypto-winter next year may be caused by three factors, signs of which appeared at the end of the outgoing year:
The first and most important is the fall in the interest of institutional investors, which is determined by the inflow or outflow of investments in closed crypto funds. According to CoinShares, the penultimate week of the year saw the maximum annual outflow of funds from crypto funds.
The second factor is the development of the concept of sovereign cryptocurrencies (CBDC). Most countries are working on transferring the circulation and issuance of money to blockchain, and China will do it in the summer of 2022. The emergence of CBDC may hit the , the size of the issue of which directly affects the capitalization of cryptocurrencies. The court fight with the largest issuer of stablecoins Tether - was the reason for the fall of BTC on 50% cryptozyme 2018 and the situation may repeat.
The third factor of the crypto-winter, the rudiments of which are observed at the end of the year, could be the regulators' fight against the advanced sector of blockchain development - the GameFi industry. The fight against the ICO sector has been successful, but was one of the reasons for the 2018 crypto winter. If "play to earn" repeats its fate in 2022, it will devalue to 30% altcoins whose value is tied to GameFi.
Former Bitcoin.com CEO Stefan Rust, who previously predicted a sharp growth in the crypto industry, believes that investors will face a decline in the cryptocurrency market next year. But that won't be unusual after a cycle of growth, writes bits.media.
Former Bitmex exchange CEO Arthur Hayes also recently predicted a bear market for cryptocurrencies and urged investors not to panic, but to consider the prospects of NFTs and meta-commodities, which are less dependent on the economic situation.
According to famous investor Louis Navellier, a significant bubble has inflated in the stock market, which could lead to a strong correction in risky assets. In this case, bitcoin could fall to $10,000.