Financial advisers and their clients might have to make the leap in 2022 as cryptocurrency regulation and the market mature. American women represent 53% of the adults curious about crypto assets, so more could join the sector.
Everyone knows that predictions about the prices of crypto assets are not always accurate. However, they help investors understand the market movements better before making any decision.
This year has been fantastic for the cryptocurrency market despite the current price correction that they are facing. The price of Bitcoin was USD 32,127 on January first but is now above USD 47,000, which indicates that 2021 was an excellent year.
Nevertheless, the adoption and recognition that it has acquired worldwide have been more important to the cryptocurrency market than price action. This year, the SEC gave the go-ahead to Bitcoin ETFs, which allowed the Coinbase exchange to go public on the US Stock Exchange.
Experts Predict that the Adoption of Crypto Assets Will Increase
The crypto community grew in 2021, as traditional financial assets did not meet the expectation to preserve or increase capital. However, that does not mean that investors lost all doubt or skepticism about that market. According to Nasdaq, pro-crypto financial advisors did not recommend investing in cryptocurrencies due to the lack of a clear regulatory and compliance framework.
According to the Financial Planning Association (FPA), almost 50% of financial advisors said their clients have asked about cryptocurrencies since July. That contrasts with 2020, when the figure was barely 17%, according to Nasdaq.
For that reason, financial advisers and their clients might have to make the leap in 2022 as cryptocurrency regulation and the market mature. Nonetheless, more leading retailers like Amazon and Walmart could join the cryptocurrency community.
The Regulation of the Cryptocurrency Market Will Be Crucial in 2022
The above prediction closely relates to the regulation of the cryptocurrency market. Experts have often highlighted that proper rules that do not stifle the sector are crucial for its growth.
Nasdaq states that experts expect a new batch of regulations and compliance actions for 2022. Patrick Haggerty, director at Klaros Group, considers that those actions will probably cause frustration in the cryptocurrency community but will be beneficial.
Women Will Gain Greater Dominance in the Cryptocurrency Market
Franck Kengne, product manager at Gemini, said that the profile of the cryptocurrency investor will evolve significantly in 2022, according to Nasdaq.
Gemini reported that only 26% of cryptocurrency holders in the United States are women. Fifty-three percent of almost two-thirds of adults curious about crypto assets in the country are women.
Nasdaq stated that experts expect crypto-curious people to take action as companies like PayPal and Microsoft join the crypto market. Of course, they predict that more women could join the sector.
Regulators Will Tighten Regulations against Speculative Markets
There usually is a debate about whether cryptocurrencies have intrinsic value when the crypto market has experienced a significant bullish run. Therefore, some experts do not believe that cryptocurrencies will be the future of finance.
In that regard, Robert Johnson, professor of finance at the Heider College of Business, predicts the cryptocurrency fever will deflate in 2022.
Johnson considers that the coming year will characterize itself by a tightening of federal policy by the Fed. That would particularly affect speculative markets, to which the expert includes the cryptocurrency sector.
By Alexander Salazar
