Bitcoin price had soared to almost $70,000 late last year before dropping to just under $30,000 in 2022. Other major cryptocurrencies, including Ethereum, Binance Coin, Solana, Cardano, and XRP, had seen similar increases last year. However, 2022 did not start off well for the crypto market. While the market was painted red in January, volatility still continues even though it picked up a bit in February.

Banking giant Wells Fargo predicts that global crypto adoption “could reach a peak soon.” Wells Fargo also stated that it is not too late to invest in crypto.

Wells Fargo's global investment strategy team said in a report released this week:

   “For today's investor, it seems reasonable to look at investments in the technology space from the mid-to-late 1990s when trying to figure out whether we are early or late in investing in cryptocurrencies. At that time, the internet was suddenly over-adopted and there was no going back. Cryptocurrencies are similar today. He seems to be following a path."

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Pointing to Bitcoin and crypto exchange Crypto.com's research, which found that the number of global cryptocurrency users reached 221 million in June 2021, or just under 3% of the world's population, “the number of global cryptocurrency users has increased from 100 million to 200 million. so it only took four months to double it.”

   “If this trend continues, cryptocurrencies may soon exit the early adoption phase and enter a crossroads of over-adoption similar to other technologies. There is often a turning point in history where adoption rates begin to increase and do not look back. Exact numbers aside, global cryptocurrency adoption There is no doubt that it is increasing and may soon reach a point of over-adoption.”

However, the Wells Fargo team warned that “the investment options for cryptocurrencies are still in the maturing phase” and advised to be patient. He added that he is hopeful that there will be better quality investment options in the crypto space by 2022 if greater regulatory clarity is achieved.

After the big bull run in 2021 and the increasing popularity of stablecoins, states and governments started to make regulations in this area.

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Last month, we reported that the Biden administration in the US is drafting a comprehensive government strategy on bitcoin and cryptocurrencies, asking federal agencies to identify their risks and opportunities.

Meanwhile, the spikes that hit Bitcoin, Ethereum, and others late last year were triggered by expectations that the US Federal Reserve will raise interest rates and the cost of borrowing this year and begin scaling back its pandemic-era stimulus measures.

The drop in crypto prices, which affected all major cryptocurrencies including Bitcoin, Ethereum, BNB, Solana, Cardano and XRP, has sparked fears that a new so-called crypto winter could begin, similar to the 2018 bear market.

BrokerChooser analyst Andras Ivan said:

   “Although the current crypto trend appears to be bearish, we must take into account that the structure of crypto investments is quite different compared to the peak at the end of 2017. 

The market cap is now significantly higher and institutional investors have flocked to this space in the last 1-2 years. This could help the market avoid the severe dips and lost interest we experienced during the 2018-2019 crypto winter.”