where crypto is going

Bitcoin hit new all-time highs in 2021 and has since fallen significantly. Theorem, the second-largest cryptocurrency, also hit an all-time high at the end of last year and fell below $900 in June, its lowest level since early 2021. US government officials and the Biden administration have expressed growing interest in new cryptocurrency regulations.

Meanwhile, people's interest in cryptocurrencies remains high: From longtime investors like Elon Musk to your high school kid on Facebook, it's a hot topic not only among investors but also in popular culture.

In many ways, 2021 was a "breakthrough," says Dave Abner, head of global development at popular cryptocurrency exchange Gemini.

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However, the industry is still in its early stages and is constantly evolving. This is in large part why a new Bitcoin height can easily be followed by a big drop.

So what will happen for the rest of 2022?

It is difficult to predict where things will go in the long, trying to get a better feel for the market by tracking the institutional adoption of

While exact predictions are impossible, we asked five experts what they think of the future of cryptocurrencies. And as the world tries to find ways to set laws and policies to make cryptocurrencies safer for investors and less attractive to cybercriminals, the conversation about cryptocurrency regulation will grow.

US officials have shown particular interest in regulating stablecoins, especially after the recent Terra Luna crash. The plunge in the cryptocurrency market in May saw stablecoin Terra USD (MUST) move away from the dollar, and related cryptocurrency Luna also plunged. As a result, many Terra and Luna investors found their investments evaporating in a matter of days. Within weeks of Terra's demise, the cryptocurrency market collapsed again, with several cryptocurrency firms announcing layoffs and freezing payments to cut costs due to extreme market conditions. Some companies, such as Three Arrows Capital and Celsius, have since filed for bankruptcy.

With this domino effect, federal regulators have recently added even more ammunition to push crypto regulation.

Marcus Sotiriou, market analyst at digital asset broker Global Block, said," Following the devastating events that have unfolded in the crypto market over the past few weeks, we believe that tougher regulation could soon come to pass. Clearly, "The collapse of the Deli lender may be what regulators have been looking for to impose tighter controls on cryptocurrencies," President Joe Biden said in March. Signed an executive order asking government agencies to investigate "responsible development". You

The U.S. Treasury Department recently released an initial framework outlining how the U.S. should engage with other countries regarding digital assets, based on President Biden's Executive Order on Digital Assets.

In 2021, Federal Reserve Chairman Jerome Powell said he had "no intention" of banning cryptocurrencies in the United States, while Security and Trade Commission Chairman Gary Gentler said the industry has repeatedly played the role of its own agency and the Commodity Futures Trading Commission in oversight. Talking to, the IRS also clearly has an interest in making sure investors know how to report cryptocurrencies when filing taxes. Powell and Gentler's comments are in line with emerging views from the Biden administration and other US lawmakers that greater regulation of cryptocurrencies is needed.

Gentler said in a recent interview," More broadly, the public will now benefit from investor protection regarding these various service providers (exchanges, lending platforms, broker-dealers). " Therefore, the SEC is working in each of these three areas (exchanges, lending, and broker-dealers) and discussing with industry participants how compliance can be achieved, or how some aspects of that compliance can be changed. " There are different agencies that may or may not be responsible for overseeing everything.

" And it varies from state to state. "

Clear regulation would remove "significant cryptocurrency hurdles," as U.S. companies and investors currently operate without clear guidelines. What New Regulation Means for Investors

Cryptocurrency regulation can be a hot topic, but many experts say it's actually good for investors and the industry.

More regulation could mean more stability in the notoriously volatile crypto market. It will also protect long-term investors, prevent cheating within the crypto ecosystem,

CEO and co-founder of Conflict, a cryptocurrency buying platform and crypto ATM network Ben Weiss," It will increase people's trust in cryptocurrencies, but I think it needs to be done over time. " That's why I recommend that mainstream US investors never invest in anything they are afraid to lose. The Securities and Exchange Commission (SEC) has repeatedly denied or postponed Bitcoin ETF applications, with a decision to be made at a later date.

A final approval decision for one of the most controversial funds from provider VanEck has been repeatedly postponed.

Some analysts believe that the approval of a mainstream Bitcoin ETF will help the world of digital currencies by opening up the industry to investors interested in avoiding some of the risks associated with buying and selling the token directly. I believe that it could bring a big boost. However, the future of the Vane ck Fund remains uncertain.

Stablecoins take the lead

Stablecoins are digital tokens pegged to fiat currency that act as a hedging mechanism against potential declines in the security price of the underlying cryptocurrency, with a view to 2021. Could be the industry's best hope.

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The Selection could grow in the coming year for two reasons: Second, the current leader in the stablecoin industry, Tether, is about to be displaced.

One of the earliest stablecoins to enter the mainstream, Tether (USDA) has endured many well-known growing pains over the course of the development of the sub-industry. Other stablecoins have already entered space and are taking the lead.

What is certain?

It is difficult to say which digital currencies will rise dramatically in 2021, but we can confidently say that cryptocurrencies will not go away anytime soon. Blockchain, the technology behind many cryptocurrencies, has spread far beyond the digital currency industry and is likely to see new applications this year. Governments and regulators will continue to work on how best to promote and manage digital tokens.

Cryptocurrency's heyday may be over, but it is also possible that there are still many positives in the cryptocurrency market. One thing we know for sure is that cryptocurrencies mean that they were once in a position to upend the entire financial system. This kind of turmoil won't go away overnight, so expect to hear from cryptocurrencies (or at least their biggest fans) for at least another year. You can count on me