Ben Cowen Crypto

It’s been a rough ride for the crypto market until 2022. As of November the market had dropped by more than 70 percent from the previous high on November 20, 2021. Just when the market was looking down, the FTX crash made them look worse. So, will the crypto market be able to recover by 2023?

Crypto Market Dips are Cyclical

The cryptocurrency market, specifically Bitcoin has had many dips over the years. Each time, it’s bounced back with a big increase.

In 2013, for instance, Bitcoin reached a peak of $1,160, then fell for more than a year before reaching a bottom of $150. In 2017 it broke that record and hit a record record high of $19,600. In 2018, the price was at $3,100. In 2020, it broke through the resistance and hit a new peak of $68,000 in the month of November 2021. Then, just like that we’ve witnessed another drop. But history shows us that at the end of every dip there’s a bull-run.

Every Dip is Followed by a Long Bull Run

Similar to what we’ve witnessed previously, dips are usually followed by a prolonged bull run that eventually breaks through the resistance created by the previous market’s highest price. This pattern can be seen in more than Bitcoin but also in other cryptocurrency.

Growing Use of Crypto and Blockchain

Blockchain technology and cryptography have progressed a lot in recent years. With more and better companies and industries taking to the technology, its use and acceptance is growing. From gaming to finance cryptocurrency is being utilized in a variety of ways. The growing popularity of crypto can lead to more people being involved in the crypto market which could boost prices.

A rise in the interest of institutions for cryptocurrency

In recent years, we’ve seen a growing interest from institutional investors in crypto. From hedge funds to banks, many large institutions are now exploring the potential in crypto currencies. The increasing interest from institutions can bring stability to the crypto market and could lead to more expensive prices.

Regulations of the government

As the crypto market is maturing, governments around the world are beginning to develop more favorable rules for crypto. This is likely to attract more investors as well as increase the mainstream adoption of crypto.

Blockchain has many more applications.

The underlying technology behind the majority of cryptocurrencies, blockchain has a wide range of possible applications beyond the realm of financial transactions. From supply chain management to voting systems, more and more industries are exploring ways they can make use of blockchain technology. This will drive more investment and interest in crypto.

Technology advancements

Blockchain and cryptocurrency technology is at the very beginning of development. As progress is made in areas such as scalability and security, the potential of cryptocurrency assets will continue to increase. This could lead to more use and increase in prices.

Uncertainty in the global economy

Due to the constant economic uncertainty brought on through the COVID-19 pandemic and other factors, more and more investors are starting to look for safe haven assets like bitcoin and even gold. Because the global economic climate is uncertain and uncertain, this could lead to an increase in demand for crypto and more expensive prices.

Retail investors are able to earn interest

Institutional investors aren’t the only people who are interested in cryptocurrency. Retail investors, or individual investors are also beginning to get involved in the cryptocurrency market. As more and more people are educated about crypto and the best ways to invest in it this could result in an increase in demand and consequently higher prices.

A growing number of people are becoming aware of and accepting cryptocurrency

As the crypto market continues to mature as more and more people are beginning to learn about and appreciate it. As awareness and acceptance of crypto grows, it will lead to increasing numbers of people purchasing or holding cryptocurrency, and this can drive up prices.

ben cowen crypto

Financial decentralization (DeFi) is a rapidly growing area of the crypto market that enables financial services to be built on top of blockchain technology. As DeFi grows and more projects and platforms are launched, it could lead to increased adoption and more expensive prices for crypto.

Developments in crypto payment methods

As the crypto market grows increasing numbers of companies are starting to accept crypto as a method of payment. This could lead to an increase in the use of crypto in everyday transactions and higher prices.

More investment from sovereign wealth funds

The sovereign wealth fund, also known as owned by the state as investments, are now beginning to explore cryptocurrency as a possible asset class. As more of these funds devote a percentage of their portfolio to crypto, this could result in a rise in demand and increased prices.

Utilization of crypto to make international payments

One of the major benefits of crypto is the ability to facilitate fast and cheap cross-border payments. As more businesses and individuals are beginning to make use of cryptocurrency for international transactions it could result in increased demand and higher prices.

The number of ATMs that accept crypto is increasing.

The number of ATMs for crypto continue to increase it will be easier for consumers to purchase and hold cryptocurrency, which can drive up demand and prices.

Development of security tokens

Security tokens, or digital assets that represent ownership of an asset, like stock or real estate, are a rapidly growing segment of the cryptocurrency market. As more security tokens are created and traded, this could lead to increased demand, and thus higher rates for the crypto.

A greater adoption rate by merchants

In the event that more merchants begin accepting crypto as a form of payment, this will make it easier for people to utilize and store crypto, which could drive up demand and prices.

Will crypto be on the rise in 2023? Only time will tell. With these things being considered, it’s likely that the crypto market will see a recovery in 2023. If you’re looking to invest for the long run, being patient and disciplined will be key.