February 1, 2023

Market and Financial News

Market and Financial News Aggregator

Top 3 cryptocurrencies to watch in 2022

2 min read

Key Insights:

  • The crypto market saw $1,800 billion wiped out during the extended crypto winter.

  • Regulatory risk, inflation, fears of a recession, and Fed monetary policy remain headwinds for cryptocurrency investors.

  • A bottoming out would present investors with an opportunity to pick up Binance Coin (BNB), Bitcoin (BTC), and Solana (SOL) at depressed price levels.

It has been a bearish eight months for bitcoin and the broader crypto market. In late 2021, the threat of a material shift in the regulatory landscape weighed on cryptocurrencies.

Governments globally and even the International Monetary Fund (IMF) called for a global regulatory framework.

This year, inflation, the fear of a recession, and a hawkish Fed added further downside pressure.

To make matters worse, the market experienced its first top ten cryptocurrency collapse. The TerraUSD (UST) and Terra LUNA meltdowns led to more calls for greater regulatory oversight.

Since a November all-time high of $3,009 billion, the total crypto market cap tumbled to a May low of $1,082 billion before steadying. With the total market cap still down by $1,809 billion, opportunities are there for investors able to withstand the pressures of crypto trading.

We have chosen three cryptocurrencies for 2022.

These are bitcoin (BTC), Binance Coin (BNB), and Solana (SOL).

Bitcoin (BTC)

Bitcoin is the largest cryptocurrency by market cap and draws interest from retail and institutional investors. Significantly, bitcoin is not only the bellwether of the crypto market but also the most stable, supported by a loyal investor base commonly referred to as bitcoin whales.

Since hitting a November 10 all-time high of $68,979, bitcoin tumbled by 62.5% to a current year low of $25,836 before finding support. Year to date, bitcoin was down 21% to $29,680.

With bitcoin adoption gaining traction in multiple jurisdictions, bitcoin remains the target cryptocurrency for both seasoned and novice investors.

The technical indicators remain bearish for now.

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