It’s hard to believe that it’s been almost a decade since the cryptocurrency market began its journey toward global acceptance and mainstream adoption. In just nine short years, a lot has changed in the digital asset space, from the platforms people used to access different currencies to newer technological advancements with blockchain technology and distributed ledger systems.
2022 marked yet another milestone year for crypto as several big changes have stayed with us into our current period.
For example, the Ethereum trade was one of the biggest trends to watch this past year due to the emergence of Ethereum 2.0. This article explores the top five changes in the crypto market and how they impact prices and traders.
Rising Numbers of Bitcoin Holders
Although the crypto market experienced a price dip in 2022 following a series of events affecting many traders, the number of BTC holders kept increasing. Bitcoin expectedly led the dip, dropping from its all-time high price of over $69,000.
Other cryptocurrencies followed, plunging the crypto market into one of its worst bearish markets. This was made worse with the collapse of FTX.
Nevertheless, it’s important to note that recent market changes haven’t diminished the appeal of owning the top cryptocurrency in the world.
Some sources claim that more investors are purchasing the dip in BTC prices in anticipation of a speedy recovery.
Data from Glassnode shows that there are more BTC “accumulation addresses” now than before the BTC collapsed.
In this context, accumulation addresses indicate at least two inbound BTC transactions with no sell-offs. These numbers show that thousands of people have been buying and holding the token despite the decrease.
The Ethereum Merge
The Ethereum network experienced positive news amidst the market storm. The Ethereum network completed the move from its proof-of-work mining algorithm to the more effective and energy-efficient proof-of-stake mining algorithm.
This migration, now called “ the Merge ,” holds significant advantages for the Ethereum network and the crypto market at large. Ethereum is the second-biggest blockchain after Bitcoin and is the first to offer decentralized finance and smart contracts.
The Merge ensures that the previously high network and gas fees are no longer issues for traders. The network speed is also faster, making it easier to send, receive, and trade cryptocurrencies on the Ethereum network. The Merge caused a slight increase in the price of ETH, but it has fallen over 15% since then, following the bearish crypto market. Ethereum has remained in decline since, having negligible price retracements.
However, analysts believe that the Merge will play a key role in the bullish market when more traders enter the market.
Rising Adoption Among Countries and Institutions
Regardless of the reports of a “crypto winter,” there has been rising adoption of cryptocurrencies in many countries and sectors. The policies of President Nayib Bukele, who promoted Bitcoin and economic freedom in the country, contributed to El Salvador’s most significant rebranding to date.
Similarly, a Brazilian parliamentary body approved a law allowing the use of cryptocurrency as a form of payment. As a result, the nation is now added to the expanding list of countries that accept cryptocurrency payments. African countries have also performed well in this regard.
Bitcoin is now accepted as legal cash in CAR. Ethiopia has also been persistent in formalizing cryptocurrency as a source of payment.
Influential businesses, like Standard Chartered and JPMorgan, have also made important advancements in cryptocurrency. All these changes have broadened the sphere’s influence and placed it well to see a rise in adoption by 2023.
Increased Calls for Crypto Regulation
Hacks, scams, and the ripple effect of crumbling crypto projects all impact traders somehow. These have prompted regulators to push for stronger regulations for the crypto market to protect traders and investors.
From the U.S. to Asia and Europe, regulators are working on frameworks to improve consumer safety in the crypto industry. It’s anyone’s guess right now which direction we will ultimately go in.
Still, it would certainly be great to see some certainty regarding investors’ rights and obligations when entering the world of cryptocurrencies. As the technology behind cryptos rapidly evolves, one thing is sure: the conversations around increased calls for regulation won’t die down anytime soon! Future rules by the government can cause increased adoption of cryptocurrencies in prominent places.
Also Read: Countries That Have Best Cryptocurrency Regulation
One of the major achievements in the world of cryptocurrency in 2022 was Bitcoin’s smooth and uninterrupted operation. Unlike traditional forms of currency, Bitcoin is decentralized and not backed by any institution, making it accessible to people all around the globe.
This independence allowed for projects that rely on Bitcoin to continue functioning seamlessly. The blockchain technology underlying Bitcoin saw daily transactions worth billions of dollars, demonstrating this digital currency’s increasing use and acceptance.
Furthermore, the number of businesses and merchants accepting Bitcoin as a form of payment also increased, providing more opportunities for people to use this currency in their everyday lives. This achievement solidified Bitcoin’s position as a leading digital currency and highlighted the potential of blockchain technology to revolutionize the financial industry.
The crypto market remains bearish for now, with signs of recovery. If you trade the bear market, it is important to find a broker that offers better trading conditions and perform your analysis to find the best trading opportunities. Getting a 2023 outlook will help you plan your trades as a crypto trader.