Since the beginning of the year 2022, the crypto market has been on the decline and after several months of falling prices, it is almost certainly now in a bear market. In this bear market, many cryptocurrencies will disappear into oblivion. But which cryptocurrencies are almost certain to have a future? In this article, we talk about 4 cryptocurrencies that are almost certain to be successful in the future.
How did Crypto prices move in 2022?
Cryptocurrency prices have suffered sharp losses in recent months. In November 2021, Bitcoin reached its all-time high of over $69,000. The other major cryptocurrencies also experienced new all-time highs this month. But soon afterwards, the entire crypto market collapsed, losing more than 55% in market cap.
The Bitcoin price and the prices of the Altcoins already fell in December. But since the turn of the year 2022, prices crashed further. This is when the crypto market officially entered a bear market, making lower lows with every move. This downtrend continued into May when Bitcoin fell below $30,000.
Why did Cryptocurrency prices fall?
Many analysts originally expected prices to rise at the turn of the year. The $ 68,000 for the Bitcoin course was only an intermediate station for six-digit Bitcoin courses. But then the prices of the cryptocurrencies fell and a bear market actually developed for several months.
Many external factors played a role in the fall in the Bitcoin price and the prices of other coins. Above all, the announcement of the increase in key interest rates by the US Federal Reserve Bank caused sharp price losses. Furthermore, the flare-up of the virus pandemic in December and later the conflict in Ukraine played crucial roles in the losses in recent months.
What could determine cryptocurrency prices in the future?
In recent years we have seen a trend that the Bitcoin price is increasingly based on the prices of tech stocks on the classic financial markets. This is mainly due to the fact that Bitcoin experienced a massive institutional adaptation. More and more banks, funds, insurance companies and other financial institutions are investing in the most important cryptocurrency.
Along with the increasing popularity of Bitcoin financial products such as Bitcoin Futures and Bitcoin ETFs , the involvement and dependency of the Bitcoin price and thus the entire crypto market on the classic financial market is increasing. This process was to have a decisive impact on the future of cryptocurrencies.
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Could certain cryptocurrencies disappear in the future?
At the moment we are in a bear market and in a phase in which financial framework conditions on the classic markets strongly determine the prices of cryptocurrencies. Efforts to heavily regulate or even ban bitcoin and other cryptocurrencies continue to threaten the success of the crypto market in the future.
These framework conditions make it likely that many cryptocurrencies will not only perform poorly during the bear market in the future, but could also have a difficult future . The bear market presents a major challenge for most investors.
Top 4 Cryptos that have an Excellent future
Based on long-term experience, we can name a few cryptocurrencies that should almost certainly be successful in the future.
#1 Bitcoin (BTC)
Bitcoin is the first and most well-known cryptocurrency worldwide. As the original, Bitcoin has been at the top of the market since the beginning and is unlikely to give up this position among the cryptocurrencies in the future.
In addition to the already massive amount of time that bitcoin has been successful, the structure of the bitcoin blockchain is playing into the hands of the cryptocurrency. Regular halvings make it increasingly difficult to continue the Bitcoin blockchain over the years. Furthermore, the number of all possible bitcoins that can ever be created is limited. This ensures that Bitcoin will become more and more valuable in the long term.
#2 Binance Coin (BNB)
Binance has become the world’s largest exchange for cryptocurrencies in recent years. The BNB is Binance’s network token. With the increasing awareness of Bianca, the BNB should remain a relevant, well-known cryptocurrency in the future.
#3 Cardano (ADA)
The ADA is the network token of the Cardano blockchain. Cardano is a network whose development is long-term. The further development of the network takes place in various phases over several years.
The long-term development, which takes place with evidence-based methods, makes it so likely that Cardano will continue to be successful in the long term. Cardano could soon become the fastest blockchain on the market.
#4 XRP (XRP)
The XRP is the network token of the payment network Ripple. Ripple recently had a legal dispute with the US Securities and Exchange Commission (SEC). This has hurt the course in recent months. But the network continued to grow during this time.
Ripple is used by numerous banks as an alternative transaction network based on the blockchain. The simple amount of capital that has already flowed into the project and XRP’s long-term success suggest that XRP will be one of the cryptocurrencies that will continue to be successful in the future.