Caspian Crypto

It’s been a tough ride for the crypto market until 2022. As of November the market was down by 70 percent from its previous high in November 2021. Just when the market was going downhill and down, the FTX crash turned them more dire. So, will the cryptocurrency market rebound in 2023?

Crypto Market Dips are Cyclical

The cryptocurrency market, specifically Bitcoin, has seen its fair share of dips in the past. And every time, it’s rebounded with a huge increase.

In 2013, for instance, Bitcoin reached a peak of $1,160. Then it fell for over a year before reaching a bottom of $150. In 2017, it broke that record and hit a record highest of $19,600. Fast forward to 2018, it was trading at $3,100. And in the year 2020 it struck through the resistance and reached a new high of $68,000 in November 2021. Then, just like that we’ve witnessed another drop. But history shows us that following each dip the bull runs.

Every Dip is Followed by a Long Bull Run

Just like we’ve seen before, fall-offs tend to be followed by a prolonged bull run, which eventually breaks through the resistance created by the previous high price. This pattern can be seen in not just Bitcoin but also other cryptocurrencies.

Growing Use of Crypto and Blockchain

Crypto and blockchain technology have progressed a lot in recent years. With more and better companies and industries taking to the technology, its use and acceptance is rising. From finance to gaming, crypto is being used in many ways. The growing popularity of crypto could lead to increasing participation in the crypto market, which in turn could drive the prices up.

A rise in the interest of institutions for crypto

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

Regulations from the Government

As the market for crypto continues to mature, governments around the world are beginning to establish more favorable rules for cryptocurrency. This will help draw more investors and boost the acceptance of crypto in general.

Blockchain has many more applications.

The technology that underlies the majority of cryptocurrencies, blockchain is a broad range of possible applications beyond just financial transactions. From supply chain management to voting systems, more companies are beginning to look at ways they can benefit from blockchain technology. This could stimulate more investment and excitement in crypto.

Advancements in technology

Blockchain technology and cryptography are still in the beginning stages of development. As advancements continue to be made in areas such as scalability and security, the potential of crypto assets will increase. This could lead to greater adoption and higher prices.

Rising global economic uncertainty

With the ongoing instability in the economy caused due to the COVID-19 pandemic as well as other factors increasing numbers of investors are starting to look for safe haven assets such as cryptocurrency and gold. Because the global economic climate remains uncertain it could result in more demand for crypto as well as more expensive prices.

Retail investors are able to earn interest

Investors from institutions aren’t the only people who are interested in crypto. Retail investors, also known as individual investors, are also starting to invest in the market for crypto. With increasing numbers of everyday people are educated about crypto and the best ways to invest in it, this could lead to increased demand and higher prices.

The growing awareness and acceptance of crypto

As the market for crypto grows, more and more people are beginning to learn about it and comprehend it. As understanding and acceptance of cryptocurrency grows, it will lead to more people purchasing and holding crypto, which can drive up prices.

caspian crypto

The Decentralized Finance (DeFi) is an emerging area of the crypto market that enables financial services to be built using blockchain technology. As DeFi grows and more platforms and projects 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 beginning to accept crypto as a form of payment. This could result in increased use of crypto in everyday transactions and an increase in the cost of transactions.

More investment from sovereign wealth funds

Sovereign wealth funds, which are government-owned investment vehicles, are now beginning to look at crypto as a potential asset class. As more of these funds dedicate a part of their assets to digital currencies, it could increase demand and higher prices.

Utilization of crypto to make international payments

One of the biggest benefits of crypto is its ability to make quick and inexpensive cross-border payments. As more businesses and individuals begin to use crypto for international transactions, this can lead to a rise in demand and higher costs.

Increasing numbers of crypto ATM’s

The number of crypto ATM’s continue to increase it will be easier for individuals to purchase and keep cryptocurrency, which can increase demand and price.

Security tokens are developed for development

Security tokens, also known as digital assets that signify ownership in an asset such as real estate or stock, are a rapidly growing segment of the cryptocurrency market. Since more and more security tokens will be issued and traded, it could lead to increased demand and higher rates for the crypto.

Merchants are more likely to adopt the concept.

With the increasing number of retailers accept crypto as a form of payment, it will make it more convenient for people to utilize and store cryptocurrency, which will increase demand and price.

So, will crypto increase in 2023? Only time will tell. With these things being considered, it’s likely that the cryptocurrency market will see a recovery in 2023. And for those who are in it for the long-term Being patient and disciplined will be key.