“Some Cryptos Will Die out in 2022,” Reports 'Big Four' Firm KPMG

https://www.fxstreet.com/cryptocurrencies/news/some-cryptos-will-die-out-in-2022-reports-big-four-firm-kpmg-202209062257

2022 has been one of the most devastating years when it comes to the history of cryptocurrencies, as the likes of Bitcoin slipped from the highs of $50,000 to $18,000. The crashes and dips noted throughout the last nine months certainly made many people question the market's future, and KPMG seems to have a not-so-uplifting opinion on the same.

What does Q3 have in store for crypto?

According to a report released by KPMG, one of the 'Big Four' in the accounting industry, interest in cryptocurrencies and other investments into similar organizations will slow down. The focus could particularly be on the crypto companies that have a niche in the token and NFT markets.

Instead, the focus will now shift to infrastructure when it comes to crypto and blockchain investments. The report read, "While investment in cryptocurrencies is expected to slowdown further, there will likely be a continued focus on the use of blockchain in financial market modernization."

Alexandre Stachtchenko, Director, Blockchain & crypto assets of KPMG France, even stated that ‘some cryptos will die out this year, particularly those that don’t have clear and strong value propositions'.

But this does not mean that 2022 has not been a fruitful year in terms of growth. In fact, despite the barrage of crashes triggered by external factors such as the Russia-Ukraine war, record high inflations and regulatory hurdles, investments by the mid-year stood way above the levels of 2021 in the same duration.

As of June 30, about $14.2 billion has been invested into the blockchain and crypto space in 2022. However, by the end of the year, it won't be possible for the investments to match up to 2021's $32.1 billion.

Total Crypto Investment till June 2022

The crypto market today

The last three weeks have not been kind towards cryptocurrencies, with even the king coin taking a brutal hit. Knocked down by 22.4%, Bitcoin is trading at $18,980 at the time of writing. While $20,000 was acting as a good support range, the 5% drop in the last 24 hours pushed it below the range.

Now since BTC has lost the support of both its 50-day (red) Simple Moving Average (SMA) and the 100-day SMA (blue), it might find some difficulty in recovering. But on the Relative Strength Index (RSI), BTC is nearing the oversold zone, which historically has been a trend reversal area.

Bitcoin Price Action - Daily Chart 

Considering historical cues, it last took Bitcoin 56 days to rise from the bottom and hit the highs on the indicator. Thus even if a recovery is triggered, it will take a while for the uptrend to find its strength.