Charlie Munger Crypto

It’s been a rough experience for the crypto market through 2022. As of November, the market had dipped by more than 70 percent from the previous high on November 20, 2021. When things were getting worse and down, the FTX crash turned things worse. The question is, can the crypto market recover in 2023?

Crypto Market Dips are Cyclical

The market for crypto, particularly Bitcoin, has seen many drops in the past. Every time, it’s rebounded with a huge rise.

For instance, in 2013, Bitcoin reached a peak of $1,160. It then plummeted for over a year before hitting a low of $150. In 2017, it broke the record and hit a record highest of $19,600. In 2018, it was trading at $3,100. And in 2020, it broke through that resistance, and reached a record high 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, there’s a bull run.

Every Dip is Followed by a Long Bull Run

Just like we’ve seen previously, dips are usually followed by a long bull run that finally overcomes the resistance set by the previous high price. This pattern can be seen in more than Bitcoin but also in other cryptocurrencies.

Growing Use of Crypto and Blockchain

Crypto and blockchain technology have made significant progress in the last few years. With more and more businesses and industries embracing it, its usage and acceptance is increasing. From gaming to finance, crypto is being used in a variety of ways. And this growing use case could lead to more people being involved in the crypto market which could increase the price.

Increased institutional interest in cryptocurrency

In recent times we’ve witnessed a rising interest from institutional investors in crypto. From hedge funds to banks, many large institutions are beginning to investigate the possibilities for crypto-based assets. The increasing interest from institutions could bring more stability to the market for crypto and lead to greater prices.

Regulations from the Government

As the crypto market is maturing, governments around the world are beginning to develop more favorable regulations for crypto. This could help attract more investors and boost the acceptance of crypto in general.

Blockchain has many more applications.

The technology that is the basis of the majority of cryptocurrencies, blockchain offers a variety of possible applications beyond the realm of financial transactions. From supply chain management to voting systems, more industries are beginning to look at ways they can make use of blockchain technology, which could stimulate more investment and excitement in cryptocurrency.

Technology advancements

Crypto and blockchain technology are still in the early stages of development. As advancements continue to be made in areas such as security and scalability, the potential of cryptocurrency assets will continue to grow. This could result in more acceptance and higher prices.

Uncertainty in the global economy

In the current economic uncertainty caused by the COVID-19 pandemic, as well as other causes increasing numbers of investors are beginning to look for safe haven investments like gold and crypto. Since the economic outlook for the world remains uncertain and uncertain, this could lead to an increase in demand for crypto and increased prices.

Interest from retail investors

The institutional investors aren’t alone in one who’s showing an interest in crypto. Retail investors, also known as individual investors, are also starting to get involved in the market for crypto. In the future, as more everyday people learn about cryptocurrency and investing in it This could result in an increase in demand and consequently higher prices.

The growing awareness and acceptance of cryptocurrency

As the crypto market continues to mature, more and more people are beginning to become aware about and appreciate it. As the awareness and acceptance grows of crypto, it will lead to increasing numbers of people purchasing and holding crypto, which can raise prices.

charlie munger crypto

The Decentralized Finance (DeFi) is an emerging area of the crypto market that allows financial services to be created on top of blockchain technology. As DeFi continues to grow and more platforms and projects become available, this could result in increased use and increased prices for crypto.

Developments in crypto payment methods

As the market for crypto grows, more and more companies are beginning using crypto to be a means of payment. This could lead to an increase in the use of crypto in everyday transactions and an increase in the cost of transactions.

Increased investment from sovereign wealth funds

Sovereign wealth funds, which are government-owned investment vehicles, are beginning to explore crypto as an asset class. As more funds devote a percentage of their portfolio to crypto, it could result in a rise in demand and increased prices.

Use of crypto for international payments

One of the biggest benefits of crypto is the ability to facilitate swift and affordable cross-border transactions. As more individuals and businesses are beginning to make use of crypto for international transactions, it could result in increased the demand for it and a rise in prices.

An increasing number of crypto ATM’s

The number of ATMs that accept crypto continue to grow it will be easier for consumers to purchase and keep crypto, which will increase demand and price.

Development of security tokens

Security tokens, which are digital assets that are used to represent ownership of an asset, such as stocks or real estate are rapidly expanding area of the crypto market. With the increasing number of security tokens being issued and traded, this can lead to a higher demand and consequently higher rates for the crypto.

More adoption by merchants

With the increasing number of businesses begin accepting crypto as a form of payment, it will make it more convenient for people to use and hold crypto, which can increase demand and price.

So, will crypto increase in 2023? Only time will tell. However, with these aspects being considered, it’s likely that the crypto market could have a rebound by 2023. For those committed to the long haul, being patient and disciplined will be key.