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. 

When Elon Musk speaks, Bitcoin investors listen. (Patrick T. Fallon/Bloomberg via Getty Images)

Cryptocurrency’s adoption into the mainstream made large gains, as many institutions and major companies started to take crypto seriously, in addition to the launch of the first U.S. exchange-traded fund tracking Bitcoin futures.

TickerSecurityLastChangeChange %
BITOPROSHARES TRUST BITCOIN STRATEGY ETF29.44+0.52+1.80%
GCCWISDOMTREE TRUST ENHANCED COMMODITY STRATEGY20.79-0.03-0.14%
BITQEXCHANGE TRADED CONCEPTS TRUST BITWISE CRYPTO INNOVATORS E21.36+0.36+1.71%

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Corporations and well-known brands like PayPal, Whole Foods, Microsoft, Home Depot, AMC and Visa started to accept crypto purchases on their networks. 

TickerSecurityLastChangeChange %
PYPLPAYPAL HOLDINGS INC.193.62+5.04+2.67%
AMZNAMAZON.COM INC.3,401.21+66.87+2.01%
MSFTMICROSOFT CORP.332.55-3.77-1.12%
HDTHE HOME DEPOT INC.405.57-9.51-2.29%
AMCAMC ENTERTAINMENT HOLDINGS INC27.20-0.01-0.04%
VVISA INC.220.61+3.95+1.82%

Meanwhile, the oldest bank in the U.S., the Bank of New York Mellon, said it would start financing Bitcoin and other digital currencies. Celebrity investors such as Musk, Jack Dorsey, Mike Tyson and Kanye West, in addition to endorsements from stars like Tom Brady and Gisele Bundchen, also helped to propel the crypto craze to new heights. 

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"At the end of the day, good technology will prevail," Yusko said. "The long-term, incredibly bright. It is amazing foundational tech that will migrate all financial services into the digital age, and it’s the biggest wealth creation I’ll ever see in my lifetime."

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