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Is there going to be a bear market in 2022?
When the year 2021 comes to an end, it will be recognized as a healthy year for equities that reflected a bull market rather than a terrible market.
Over the last four decades, the S&P 500 has more than doubled (+24%) its average annual total return of 11%.
But when it comes to cryptocurrencies, things have been more than decent — they’ve been spectacular.
Since the beginning of the year, the total value of digital currencies has increased by 176 percent to $2.14 trillion.
New possibilities for decentralized finance (DeFi), non-fungible tokens (NFTs), and the immense potential for blockchain-based games in the metaverse strengthened investor confidence while sending cryptocurrencies to previously unimagined heights (just look at the rise of the meme-coin Shiba Inu of more than 45,000,000 percent year-to-year).
However, there are some concerns that the coming year would not be kind to cryptos.
There are several factors that might contribute to a crypto bear market in 2022.
FED’s Policy
The FED finally conceded that inflation was more than ‘transitory,’ and obliquely foreshadowed the likelihood of several interest rate hikes next year.
