Cryptocurrencies have grown in immense popularity in recent years, but 2021 was the climax of digital currency. This year we witnessed more and more investors join the industry as the prices of cryptos increased. But what does the future now hold for digital currency? We saw how Bitcoin's value shot up.

We're also aware of the new regulatory proposals as well as buy-ins from leading companies. But the most significant development in the digital currency market is the growing interest in cryptos, making it a hot topic.

However, the crypto industry is still in its early stage and is rapidly evolving, meaning predicting the future is still impossible. But experts are following the emerging industry trends and the new regulatory proposals and have made quite interesting observations about the future of the digital currency market. Below are the five trends to watch out for at the end of cryptos, according to experts.

Cryptocurrency Regulations

In the coming months and even the following years, expect talks on cryptocurrency regulations to intensify. Law and policymakers worldwide are figuring out new ways to make the cryptocurrency market safer for investors and harder for cybercriminals. China is focused on its digital currency crackdown while the US lawmakers have proposed new regulations that reinforce cryptocurrency tax policies.

Possible Impacts Of New Cryptocurrency Regulations

The recently proposed regulations could help the IRS crackdown on tax evasion while keeping investors accountable for their cryptocurrency transactions. If the bill is passed, investors will be issued free 1099-B tax forms to ensure efficient filing of crypto taxes.

On the other hand, new regulations could adversely affect the prices of cryptos in a market that is already volatile. Given the crypto market volatility, experts recommend not investing more than 5% of your total cryptocurrency assets. Overs, experts are upbeat about sensible and reasonable regulations that favor everyone, including the government and investors alike.

Crypto ETF Approval

There have been hints that cryptocurrency investors could soon be provided with an ETF. This could present investors with a better and efficient way to invest in cryptos. With ETF, investors could purchase cryptocurrency assets directly from traditional investment brokerages such as Fidelity or Vanguard. Experts point out that since the ETF is a big deal in both the equity and bond markets, it should be there in the cryptocurrency world.

Possible Impacts Of Cryptocurrency ETF

Currently, crypto ETFs aren't offered in the United States. However, such approval would allow many Americans to invest in and trade in the digital currency market. As an investor, you could include crypto into your portfolio from the same brokerage account. Still, a crypto ETF cones with the same cryptocurrency investment risks given the volatile market.

Outlook On Bitcoin's Future

Bitcoin serves as a reliable cryptocurrency market indicator. Other cryptos tend to follow the same pattern as Bitcoin, which is undeniably the largest and most valuable crypto. In 2021 Bitcoin took a rather wild ride, standing at $50,000 in July.

This trend is expected to continue with experts looking forward to a $75,000 value in Bitcoin prices in 2021 and beyond. For most investors, this crypto market volatility picking a long-term growth strategy is far more promising.

Conclusion

Although most of these predictions remain speculative, the market has yielded such promising outcomes that experts are convinced these predictions might be the next big thing. Still, no one knows what the future holds, so you should only invest what you can afford to lose.

A conventional investment in long-term growth goals should be the way to go. Also, never make cryptocurrency investment a priority above other investment goals. More crypto investment insights can be found on erecoin.io