It’s been a tough experience for the crypto market in 2022. In November, the market had dipped by 70 percent from its previous high in November 2021. When things were getting worse and down, the FTX crash turned things more dire. The question is, can the crypto market be able to recover by 2023?
Crypto Market Dips are Cyclical
The market for crypto, particularly Bitcoin, has seen its fair share of dips over the years. Every time, it’s rebounded by a massive rally.
For example, in 2013, Bitcoin reached a peak of $1,160, then fell for over a year before hitting a low of $150. But, in 2017 it broke that record and hit a record record high of $19,600. Then, in 2018, and it was trading at $3,100. In the year 2020 it struck through that resistance and hit a new highest of $68,000 in November 2021. And just like that, we’ve had another dip. However, history has shown us that after each dip the bull runs.
Every Dip is Followed by a Long Bull Run
Similar to what we’ve witnessed previously, dips are typically followed by a lengthy bull run that finally overcomes the resistance set by the previous high price. This is evident in more than Bitcoin but also other cryptocurrencies.
Growing Use of Crypto and Blockchain
Blockchain technology and cryptography have made significant progress in the last few years. With more and more companies and industries adopting it, its usage and acceptance is growing. From gaming to finance, crypto is being used in many ways. This growing demand could result in more people being involved in the market, which in turn could drive the prices up.
A rise in the interest of institutions for crypto
In recent years we’ve witnessed a rising demand from investors of institutional scale in crypto. From hedge funds to banks numerous large institutions are beginning to investigate the possibilities in crypto currencies. The increasing interest from institutions could provide more stability to the crypto market and could lead to greater prices.
Regulations from the Government
As the crypto market grows as it matures, governments all over the world are beginning to develop more favorable rules for cryptocurrency. This will help draw more investors and boost the mainstream adoption of crypto.
More use cases for blockchain
The technology that is the basis of many cryptocurrencies, blockchain, has a wide range of applications that go beyond just financial transactions. From supply chain management to voting systems, more industries are exploring ways they can utilize blockchain technology. This will increase investment and enthusiasm in crypto.
Technologies are constantly evolving.
Crypto and blockchain technology are still in the early stages of development. As progress is made in areas like scalability and security, the potential of crypto assets will continue to increase. This could result in more adoption and higher prices.
Rising global economic uncertainty
With the ongoing economic uncertainty brought on due to the COVID-19 pandemic, as well as other causes increasing numbers of investors are looking for safe haven investments like cryptocurrency and gold. Since the economic outlook for the world remains uncertain and uncertain, this could lead to increased demand for crypto and higher prices.
Retail investors are able to earn interest
The institutional investors aren’t alone in people who are interested in cryptocurrency. Retail investors, or even individual investors are also beginning to get involved in the market for crypto. With increasing numbers of people learn about crypto and how to invest in it, this could lead to increased demand and higher prices.
Growing awareness and acceptance of cryptocurrency
As the market for crypto continues to mature, more and more people are beginning to learn about and understand the concept. As awareness and acceptance of crypto grows, this could lead to more people purchasing or holding cryptocurrency, and this could drive up prices.
buy valorant points with crypto
Decentralized finance (DeFi) is an emerging area of the crypto market that allows financial services to be built using blockchain technology. As DeFi continues to grow and more platforms and projects are launched, it will lead to a rise in adoption and more expensive prices for crypto.
Developments in crypto payment methods
As the crypto market continues to grow as more and more businesses are starting using crypto to be a form of payment. This could lead to increased usage of crypto in daily transactions, and a rise in prices.
Increased investment from sovereign wealth funds
Sovereign wealth funds, which are government-owned instruments for investing, are starting to show interest in crypto as an asset class. As more of these funds allocate a portion of their assets to digital currencies, this could increase demand and increased prices.
Utilization of crypto to make cross-border payments
One of the major benefits of crypto is the ability to make swift and affordable cross-border transactions. As more individuals and businesses start to utilize 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 grow it will be easier for people to buy and keep crypto, which could boost demand and increase prices.
The development of security tokens
Security tokens, also known as digital assets that represent ownership in an asset such as real estate or stock, are a rapidly growing segment of the cryptocurrency market. As more security tokens are issued and traded, it could lead to increased demand and consequently higher rates for the crypto.
More adoption by merchants
With the increasing number of merchants accept crypto as a means of payment, it will make it easier for consumers to use and hold crypto, which can boost demand and increase prices.
So, will crypto grow in 2023? Only time will tell. With these things in mind, it’s possible that the crypto market will have a rebound by 2023. And for those who are committed to the long run, being patient and disciplined is essential.