Crypto's 2022 outlook after breakthrough 2021
Crypto surpasses $3T in value over 2021
FOX Business’ Kelly O’Grady says investors embraced cryptocurrency’s volatility and legitimacy.
The cryptocurrency market saw its golden year, surpassing $3 trillion in value in November as popular cryptocurrencies like Bitcoin and Ethereum soared before giving up some of those gains as 2021 wrapped.
Bitcoin’s price rose to $68,521 in early November but dropped off sharply, now trading below the $50,000 mark. Despite the continued volatility, experts are anticipating Bitcoin’s value to reach above $100,000 by next year.
Ditto for Ethereum, which is hovering around $3,800 from a high of $4,865.
And experts say that while the unknown is scary, we are at the beginning of financial services’ tech revolution and therefore everyone should invest at least some of their portfolio in crypto.
"The average investor should have a little bit of exposure," Mark Yusko, founder of Morgan Creek Capital Management, told FOX Business. "Start small, 1 to 3%, then increase overtime the same way you would with any asset that starts to accumulate in your portfolio."
Amid the next technological revolution, and with the younger generation of digital natives more likely to embrace digital assets, crypto’s role in the financial system is here to stay, according to Yusko.
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Although concern over potential regulation, China’s crackdown on cryptocurrency mining and questions surrounding Bitcoin’s environmental footprint raised speculation and doubt, those temporary dips were offset by other positive developments. Bitcoin rallied to new highs on the heels of tweets from billionaire Tesla founder Elon Musk, El Salvador’s adoption of the cryptocurrency and the surging influx of retail traders.