5 Reasons Cryptocurrencies Can Crash in 2022
When the curtain closes on 2021, it'll go down as another solid year for the stock market. Through Dec. 13, the benchmark S&P 500 had more than doubled (+24%) its average annual total return of 11% over the previous four decades.
But for cryptocurrencies, things haven't been good -- they've been outstanding. Since the year began, the aggregate value of digital currencies has increased by 176% to $2.14 trillion. Investors have been driven by the excitement surrounding decentralized applications and decentralized finance (DeFi), the rise of non-fungible tokens (NFTs), and the mammoth potential for blockchain-based gaming in the metaverse. And let's face it, cryptocurrencies are also chasing life-altering gains, such as the more than 45,000,000% year-to-date increase in meme-coin Shiba Inu (CRYPTO: SHIB).
However, the upcoming year may not treat digital currencies as kindly. What follows are five reasons cryptocurrencies, as a whole, could crash in 2022.
Source Fool.com
