2021 can be described as a turbulent year for Bitcoin and cryptocurrencies, but the market was very productive. The market capitalization of cryptocurrencies has tripled from less than $ 800 billion on Jan. 1 to around $ 2.2 trillion, some of which assets have brought users “super” returns. The increase is spread across the entire ecosystem, as the dominance of Bitcoin and Ethereum has dropped from over 80% to over 60%.

Plus, the continued growth in DeFi and NFT applications suggests that the coming year could bring even more returns for investors.

Here are 5 series of crypto events users should watch out for in 2022.

1. Further rules

The cryptocurrency industry has been thriving so far thanks to its decentralized structure and unregulated nature. However, many in the industry also think that the market will continue to grow with regulations as long as they are applied transparently.

Many governments are trying to find ways to regulate the crypto market by preventing cybercrime and making retail investors safer. Among them, China is a prominent country with a ban on cryptocurrency activities in the country except for those approved by the government.

Cryptocurrency investors and companies are hoping that other governments will take a more cautious approach to the market, where the SEC, the CFTC, and the Treasury Department all support the new regulations. For investors, regulation means clearer tax policies and even the ability to incorporate crypto investments into retirement accounts. And if cryptocurrency trading tools can be regulated, they could help fuel widespread adoption by providing investors with an extra layer of security.

2. Bitcoin ATMs appear to be very common

The intangible nature of cryptocurrencies has long detered users from investing; many people have difficulty seeing Bitcoin as money because they cannot see or touch it. But now that Bitcoin ATM installation is becoming more common in different parts of the world, people will be able to view digital assets as “tangible” investments.

The number of Bitcoin ATMs has increased steadily since 2015 and reached a new high in 2021. According to Coin ATM Radar, there are now more than 33,000 Bitcoin ATMs worldwide.

Bitcoin ATMs essentially allow people to purchase BTC using their credit or debit card. This makes it easy for both enthusiasts and newbies to access cryptocurrency. Bitcoin ATMs can really eliminate crypto brokers as people can easily transact, however the machine’s transaction fees are quite high compared to the general market.

3. Improve the environment

Crypto skeptics have made many arguments against the market due to the negative environmental impact of blockchain networks.

Bitcoin mining requires a lot of computing power that uses a lot of energy. With most bitcoins mined through the use of proof-of-work (PoW) protocols, a major change in energy costs is unlikely in 2022. Aside from the high energy costs involved in Bitcoin mining, the process also generates electronic waste from the disposal of damaged mining equipment.

On the other hand, newer cryptocurrencies like Cardano and Solana have been praised for introducing a proof-of-stake (PoS) mechanism that doesn’t require a lot of energy. And Ethereum, number 2 by market capitalization, is about to move from PoW to PoS. Many other cryptocurrencies are likely to follow the move from Ethereum to PoS, which makes the process more environmentally friendly. If this develops in 2022, it will bring benefits to the space, even if Bitcoin fails to improve its energy usage.

4. Bitcoin’s continuous price volatility

Bitcoin is by far the largest cryptocurrency in the world, and its value remains the most widely used standard in the cryptocurrency market.

Bitcoin is considered to be one of the most volatile asset classes in 2021, with an ATH above the $ 60,000 region in April, falling below $ 30,000 in July, then setting an ATH near the $ 69,000 region in November, and then up the current level fell in the range of $ 42,000.

BTC price chart | Source: Coinmarketcap

Bitcoin’s characteristic volatility is likely to continue through 2022, if the crypto market is not yet fully mature.

Volatility is the reason why many professional traders prefer Bitcoin, the high volatility of the market allows them to take advantage of the arbitrage, but that is also why many money managers recommend it. Be careful and ask your customers to only allocate 5% of their portfolio to cryptocurrencies. Investors should be prepared for the fact that Bitcoin plunges frequently after the price spike.

Bulls always expect Bitcoin and other cryptocurrencies to continue to fluctuate in the short term, but to see steady growth in value over the long term despite regular corrections. Therefore, investors need to be patient and not worry too much about the temporary ebb and flow of the market, but rather focus on the long-term outlook.

5. Spot ETF admission

BITO, the first Bitcoin futures ETF to list on the New York Stock Exchange in 2021, saw record trading volumes and approached the $ 1 billion mark on day one. This shows investors’ interest in a cryptocurrency product that they can buy and trade on regular exchanges.

But BITO doesn’t hold bitcoins, it’s just a means of giving retail investors access to bitcoin futures, not actual BTC. It is not a “spot” ETF. Many spot ETF filings have been filed with the SEC, but the agency never approved them. However, based on BITO’s performance and the confidence investors have in the market, there is a high chance a spot Bitcoin ETF will be approved in 2022, along with potential ETFs tied to other markets.

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