The Bloomberg expert on financial markets shares his thoughts on what the crypto markets bring for altcoin projects Cardano and Ethereum in 2022. Market expert Eddie van der Walt believes he saw a real breakthrough for cryptocurrencies in 2021 because, according to him, crypto has become “part of the financial space.”
2 altcoins are spreading
Crypto is preferred by institutions compared to a few years ago. Compared to a few years ago, when institutions and financial experts said that Bitcoin and other cryptos were “worthless”, the situation has changed for the better. In 2021, the crypto industry saw the arrival of multiple ETFs, including the first Bitcoin futures to be approved by the SEC in the US. Walt confirmed that there is a complete infrastructure that allows financial institutions to enter the space (and Bitcoin in particular) with large amounts of funds. For these particular reasons, Eddie van der Walt emphasized that 2021 is a real breakthrough for crypto and creates a bright future for this space. Specifically, Walt spoke of high-end blockchains like Cardano and Ethereum, saying that they “have taken over the NFT space and are moving forward in the narrative about what to do with cryptocurrencies.”
However, he stated that “US regulation is a major risk factor for cryptocurrencies.” Regulators are on alert to decide how to handle the crypto space, especially in the US. That’s why Walt described regulation as a major risk factor for crypto, as it hasn’t been regulated before. Therefore, there is currently a kind of regulatory arbitrage between crypto and regular assets. And this could be negative for cryptocurrencies in the short term, according to the Bloomberg expert. However, in the long-term prospect, he believes regulation for crypto assets will be good because it will allow both institutional and private investors to get involved in them.