Bitcoin price dropped from $50,000 to $18,000 in 2022. That’s why 2022 has been one of the most devastating years in the history of cryptocurrencies. The crashes and dips recorded in the last nine months have certainly made many people question the future of the market. KPMG has a rather unflattering view of these cryptocurrencies.
What’s in store for cryptocurrencies in the third quarter?
KPMG, one of the ‘Big Four’ of the accounting industry, has produced a report on the crypto market. According to this report, interest in cryptocurrencies and other investments in similar organizations will slow down. The focus will likely be on crypto companies, especially those that have a place in the token and NFT market. Instead, the focus will now shift to infrastructure when it comes to crypto and blockchain investments. KPMG makes the following assessment in the report:
“We expect investment in cryptocurrencies to slow further. In this environment, it is likely that the focus on the use of Blockchain in financial market modernization will continue.”
Alexandre Stachtchenko, Director of Blockchain and crypto assets at KPMG France, even says that “some cryptos, particularly those without clear and strong value propositions, will run out this year.” However, this does not mean that 2022 is not a productive year for growth.
As a matter of fact, despite the collapse triggered by external factors such as the Russia-Ukraine war, record high inflation and regulatory barriers, investments remained well above 2021 levels in the same period as of mid-year. As of June 30, approximately $14.2 billion was invested in the blockchain and crypto space in 2022. However, by the end of the year, investments will not be able to match the $32.1 billion in 2021.
Total crypto investment by June 2022How is the current state of the cryptocurrency market?
cryptocoin.com As you follow, the last three weeks have not been kind to cryptocurrencies. Even the leading cryptocurrency has taken a brutal blow. Bitcoin, which lost 22.4% value, was trading at $ 18,980 at the time of writing. $20,000 was acting as a good support range for bitcoin. However, the 5% drop in the last 24 hours pushed it below the range.
Crypto analyst Aaryamann Shrivastava notes that now BTC has lost support of both its 50-day (red) Simple Moving Average (SMA) and 100-day SMA (blue). So he’s likely to have some difficulty recovering, according to the analyst. However, on the Relative Strength Index (RSI), BTC is approaching the oversold region, which has historically been a trend reversal area.
Bitcoin price action, daily chartConsidering the historical clues, it took 56 days for Bitcoin to rise from the bottom and reach the highs in the indicator. Therefore, even if a rebound is triggered, it will take some time for the uptrend to find its strength.
