It’s been a difficult journey for the cryptocurrency market through 2022. In November the market was down by 70 percent from the previous high at the end of November. When things were going downhill after the FTX crash turned them worse. So, will the crypto market be able to recover by 2023?
Crypto Market Dips are Cyclical
The cryptocurrency market, specifically Bitcoin, has seen its fair share of dips over the years. Each time, it’s rebounded with a huge rally.
For example, in 2013, Bitcoin reached a peak of $1,160. It then plummeted for over a year before reaching a bottom of $150. In 2017, it broke the record and reached a new record high of $19,600. In 2018, the price was at $3,100. And in 2020, it broke through the resistance and hit a new high of $68,000 in November 2021. And just like that, we’ve seen another dip. But history shows us that after each dip, there’s a bull run.
Every Dip is Followed by a Long Bull Run
As we’ve seen previously, dips are usually followed by a long bull run, which eventually breaks through the resistance created by the previous high price. This is evident in not just Bitcoin but also in other cryptocurrencies.
Growing Use of Crypto and Blockchain
Blockchain and cryptocurrency technology has come a long way in recent years. With more and better companies and industries adopting it, its usage and acceptance is rising. From finance to gaming cryptocurrency is being utilized in many ways. This growing demand could lead to more people being involved in the market and, in turn, increase the price.
A rise in the interest of institutions for crypto
In recent years we’ve noticed a growing curiosity from institutions investing in crypto. From hedge funds to banks, many large institutions are now exploring the potential of crypto assets. This increased interest from institutions can bring stability to the market for crypto and result in higher prices.
Regulations from the Government
As the market for crypto grows and mature, governments across the globe are starting to create more favorable regulations for cryptocurrency. This could help attract more investors as well as increase the acceptance of crypto in general.
Blockchain has many more applications.
The technology that underlies many cryptocurrency, blockchain, offers a variety of potential use cases beyond just financial transactions. In addition to supply chain management, voting and other systems companies are starting to explore how they can utilize blockchain technology, which could drive more investment and interest in crypto.
Technology advancements
Blockchain technology and cryptography are at the very beginning of development. As advances continue to be made in areas like scalability and security, the potential of crypto assets will continue to increase. This could lead to greater acceptance and higher prices.
Global economic uncertainty is growing
In the current instability in the economy caused through the COVID-19 pandemic and other factors many investors are looking for safe haven assets like bitcoin and even gold. Because the global economic climate is uncertain it could result in an increase in demand for crypto and more expensive prices.
Retail investors are able to earn interest
Institutional investors aren’t the only one who’s showing an interest in cryptocurrency. Retail investors, or even individual investors, are also starting to participate in the crypto market. As more and more people become aware of crypto and how to invest in it This could result in more demand and higher prices.
The growing awareness and acceptance of crypto
As the market for crypto is maturing, more and more people are beginning to become aware about it and comprehend it. As awareness and acceptance of cryptocurrency grows, it will lead to more people purchasing as well as holding the crypto that could raise prices.
1080 ti crypto mining
The Decentralized Finance (DeFi) is an emerging area of the crypto market that allows the provision of financial services developed upon blockchain technology. As DeFi continues to grow and more projects and platforms are launched, it will lead to a rise in adoption and more expensive prices for crypto.
Advances in crypto-based payment methods
As the crypto market grows, more and more companies are beginning using crypto to be a form of payment. This could lead to an increase in the usage of crypto in daily transactions and higher prices.
More investment from sovereign wealth funds
Sovereign wealth funds, which are state-owned instruments for investing, are starting to show interest in crypto as an asset class. As more funds devote a percentage or their entire portfolios to cryptocurrency, it could lead to increased demand and more expensive prices.
Use of crypto for payment across borders
One of the biggest benefits of cryptocurrency is its ability to make fast and cheap cross-border payments. As more businesses and individuals are beginning to make use of crypto for international transactions, it could result in increased demand and higher costs.
An increasing number of crypto ATM’s
As the number of ATMs for crypto increase, it will become easier for people to buy and store crypto, which could drive up demand and prices.
The development of security tokens
Security tokens, which are digital assets that signify ownership of an asset, such as stocks or real estate, are a rapidly growing sector of the crypto market. As more security tokens are created and traded, this could lead to increased demand and higher rates for the crypto.
A greater adoption rate by merchants
In the event that more retailers start accepting crypto as a means of payment, it will make it easier for consumers to use and hold crypto, which could increase demand and price.
So, is crypto likely to grow in 2023? The only way to know is time. With these things in mind, it’s likely that the crypto market will be able to see a rebound in 2023. For those committed to the long haul, being patient and disciplined will be key.