Best Crypto App Australia

It’s been a tough experience for the crypto market in 2022. As of November the market had dropped by more than 70 percent from its previous high in November 2021. And just when things were getting worse, the FTX crash made them look even more dire. So, will the cryptocurrency market rebound in 2023?

Crypto Market Dips are Cyclical

The cryptocurrency market, specifically Bitcoin has had its fair share of drops in the past. Every time, it’s rebounded with a huge rise.

In 2013, for instance, Bitcoin reached a peak of $1,160. It then plummeted for a full year, reaching a low of $150. In 2017, it broke the record and hit a record record high of $19,600. Fast forward to 2018, the price was at $3,100. In 2020, the price broke through the resistance and hit a new highest of $68,000 in November 2021. Then, just like that we’ve had another dip. But history shows us that at the end of every dip the bull runs.

Every Dip is Followed by a Long Bull Run

Just like we’ve seen before, fall-offs are typically followed by a prolonged bull run that eventually breaks through the resistance created by the market’s previous highest price. This is evident not only in Bitcoin but also in other cryptocurrencies.

Growing Use of Crypto and Blockchain

Blockchain technology and cryptography have made significant progress in recent years. With more and more companies and industries adopting it, its usage and acceptance is growing. From gaming to finance the use of crypto is increasing in a myriad of ways. And this growing use case can lead to more people getting involved in the market, which in turn could boost prices.

A rise in the interest of institutions for cryptocurrency

In recent years, we’ve seen a growing demand from investors of institutional scale in cryptocurrency. From banks to hedge funds, many large institutions are starting to explore the potential in crypto currencies. The increased interest of institutions could bring more stability to the crypto market and could lead to more expensive prices.

Government regulations

As the market for crypto is maturing and mature, governments across the globe are starting to create more favorable rules for crypto. This will help draw more investors and increase the mainstream adoption of crypto.

A broader range of blockchain applications

The technology that is the basis of many cryptocurrencies, blockchain, has a wide range of potential use cases that go beyond financial transactions. In addition to supply chain management, voting and other systems companies are starting to explore how they can benefit from blockchain technology. This will drive more investment and interest in cryptocurrency.

Technology advancements

Crypto and blockchain technology are at the very beginning of development. As progress is made in areas like security and scalability, the potential of crypto assets will continue to grow. This could lead to more acceptance and higher prices.

Uncertainty in the global economy

With the ongoing economic uncertainty caused by the COVID-19 pandemic and other factors many investors are beginning to look for safe haven assets like gold and crypto. As the global economic situation remains uncertain, this could lead to more demand for crypto as well as higher prices.

Retail investors are able to earn interest

The institutional investors aren’t alone in one who’s showing an interest in cryptocurrency. Retail investors, or even individual investors are also beginning to participate in the cryptocurrency market. With increasing numbers of everyday people learn about crypto and the best ways to invest in it, this could lead to an increase in demand and consequently higher prices.

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

As the market for crypto is maturing as more and more people are beginning to learn about it and comprehend it. As understanding and acceptance of crypto grows, this could lead to increasing numbers of people purchasing and holding crypto, which could raise prices.

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Decentralized finance (DeFi) is an area that is rapidly expanding in the crypto market that allows financial services to be developed on top of blockchain technology. As DeFi continues to grow and more platforms and projects come online, this could lead to increased adoption and higher prices for crypto.

Advances in crypto-based payment methods

As the crypto market grows as more and more businesses are beginning to accept crypto as a means 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

The sovereign wealth fund, also known as government-owned instruments for investing, are now beginning to explore cryptocurrency as a possible asset class. As more funds devote a percentage of their portfolio to crypto, this could result in a rise in demand and more expensive prices.

Use of crypto for cross-border payments

One of the major benefits of cryptocurrency is its ability to facilitate fast and cheap cross-border payments. As more and more people and businesses start to utilize cryptocurrency for international transactions, it could result in increased demand and higher costs.

An increasing number of crypto ATM’s

With the amount of crypto ATM’s increase it will be easier for consumers to purchase and store crypto, which will increase demand and price.

Security tokens are developed for development

Security tokens, also known as digital assets that signify ownership of an asset, like stocks or real estate are rapidly expanding segment of the cryptocurrency market. Since more and more security tokens will be issued and traded, this can lead to a higher demand, and thus higher costs for cryptocurrency.

More adoption by merchants

In the event that more merchants start accepting crypto as a means of payment, it makes it easier for consumers to use and hold cryptocurrency, which will boost demand and increase prices.

So, will crypto increase in 2023? It’s only time to find out. However, with these aspects in mind, it’s possible that the crypto market will have a rebound by 2023. If you’re in it for the long haul Being patient and disciplined is crucial.