the crypto investor said. Can digital assets bring a return in 2022?

 the crypto investor said. Can digital assets bring a return in 2022?

Crypto investors have long been expected to "link" bitcoins and growth stocks, as the two assets have often been traded together over the past several months. Both have suffered this year, as investors worry about rising inflation, signs of economic slowdown, and tightening of monetary policy at the Federal Reserve.

Markets have shown signs of possible "de-coupling" this week, but not as much as cryptocurrency enthusiasts expected, as Bitcoin fell and the central stock index rose on Thursday.

According to CoinDesk, Bitcoin fell 1.4 percent in the last 24 hours to 29,462 on Thursday, while Eder fell 6.1 percent to close at 8,846. In contrast, the Dow Jones Industrial Average rose 1.7 percent to 32,680, the Standard & Poor's 500 SPX rose 2.1 percent, and the Nasdaq Composite rose 2.7 percent.

Bitcoin BTCUSD, -1.99%, is 55% below its all-time high in November and continues to trade flat, while Ether and ETHUSD are trading below -4.04%, which is their record high. ۔ General chat lounges see more damage than small coins.

2022 a harmful year for crypto?

Analysts say the crypto's full-year performance depends largely on investors' willingness to risk it, due to the macroeconomic environment.

When bitcoin outperformed the stock in the first quarter, it could accelerate. "I think you can get rid of cryptocurrencies faster than traditional markets," said Joseph Hickey, Blackfly's head of global commerce, in an interview.

Tony Neman, director of Forex Basics Informa Global Markets, said: "It's very likely that the bitcoin will be affected in 2022, noting that the cryptocurrency is trading at around $ 48,000 a year." "A more appropriate question might be whether BTC / USD is behind the recent high of $ 25,425," Nieman wrote in an email to Market Watch.

"We think it's possible," Neiman wrote, identifying $ 22,000, $ 20,000, and $ 17,840 as "absolute negative spending" for the second half of the year.

Ben Macmillan, founder and chief investment officer of IDX Digital Assets, described the recent stabilization of the cryptocurrency market with the fall of .com in the early 2000s as "finally good for space".

"It reminds me of the 2000s, Pets.com and Amazon.com sales. They're both 80 percent lower. One went out of business, the other became an industry leader," Mack said. Melania said.

"I think the key to increasing long-term value is that we need to get risky investments back into the market," said McMillan. "That means investors should see an increase in inflation. I think they should look to the Federal Reserve, which helps raise hopes when they can recover in difficult times."

If he wants a return of the threat, Macmillan said he wouldn't be surprised to see the bitcoin "come back for years, maybe a little better."

Investors are also looking at "merging" Ethereum, a major upgrade that will move blockchain from proof-of-work to proof-of-work, a consensus approach that uses less power.

The Ethereum Foundation, which supports blockchain, expects the "integration" to be completed in the third or fourth quarter of this year.

"I think it would be a good value catalyst, but would it be enough to promote Ethereum if the macro environment is tight and we still don't have many risky assets to supply? I don't think investors. We will trust you. It has to be done. "

Despite selling pressure in public markets, capitalist misconduct continues to dominate the private market.

Anderson Horowitz said Wednesday that he has raised $4.5 billion for his fourth and largest cryptocurrency fund. “We believe we are entering the golden age of Web3,” Chris Dixon, founder and managing partner of the company's crypto unit, said in an email statement about the next generation of the Internet.

However, "the costs are still really low for most transactions. That's a good idea," Keita Gupta, founder and general partner of Delta Blockchain Fund, said in an interview with MarketWatch.

“I think it would backfire, which it actually did,” Gupta said. “We really see ourselves as a fund looking at popular projects and saying, 'You know what it is. It's not worth it.'" "Even after we get past them, it's not like today, where someone else came and paid them more."