Blog

It’s been a rough journey for the cryptocurrency market until 2022. By November, the market had dipped by 70% from its previous peak on November 20, 2021. And just when things were looking down after the FTX crash made them look even worse. So, will the cryptocurrency market rebound in 2023?

Crypto Market Dips are Cyclical

The cryptocurrency market, specifically Bitcoin has had its fair share of dips over the years. Every time, it’s rebounded with a big rise.

In 2013, for instance, Bitcoin reached a peak of $1,160. Then it fell for more than a year before hitting a low of $150. However, in 2017, it broke the record and reached a new high of $19,600. In 2018, the price was at $3,100. And in the year 2020 it struck that resistance and hit a new peak of $68,000 in the month of November 2021. Then, just like that we’ve witnessed another drop. However, history has shown 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 in the past, dips are usually followed by a lengthy bull run that eventually breaks through the resistance created by the previous high price. This is evident in more than Bitcoin but also in other cryptocurrencies.

Growing Use of Crypto and Blockchain

Blockchain technology and cryptography have progressed a lot in recent years. With more and more businesses and industries embracing the technology, its use and acceptance is rising. From banking to gaming the use of crypto is increasing in many ways. And this growing use case could result in increasing participation in the market and, in turn, increase the price.

Increased institutional interest in crypto

In recent times we’ve witnessed a rising interest from institutional investors in cryptocurrency. From banks to hedge funds and even large corporations are starting to explore the potential for crypto-based assets. This increased interest from institutions could provide more stability to the crypto market and could lead to higher prices.

Government regulations

As the market for crypto continues to mature and mature, governments across the globe are beginning to develop more favorable rules for cryptocurrency. This will help draw more investors as well as increase the mainstream adoption of crypto.

More use cases for blockchain

The underlying technology behind many cryptocurrency, blockchain, is a broad range of applications that go beyond just financial transactions. For example, from supply chain management and voting, many and more industries are exploring ways they can make use of blockchain technology, which could stimulate more investment and excitement in cryptocurrency.

Advancements in technology

Blockchain technology and cryptography are still in the beginning stages of development. As progress is made in areas such as security and scalability, the potential of crypto assets will expand. This could lead to greater acceptance and higher prices.

Uncertainty in the global economy

With the ongoing instability in the economy caused due to the COVID-19 pandemic and other factors increasing numbers of investors are starting to look for safe haven investments like gold and crypto. As the global economic situation is uncertain, this could lead to increased demand for crypto and higher prices.

Retail investors are able to earn interest

Institutional investors aren’t the only people who are interested in cryptocurrency. Retail investors, or even individual investors, are also starting to get involved in the crypto market. With increasing numbers of everyday people learn about crypto and the best ways to invest in it this could result in more demand and higher prices.

Growing awareness and acceptance of crypto

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

crypto-js cdn

The Decentralized Finance (DeFi) is an emerging area of the crypto market that allows finance services developed upon blockchain technology. As DeFi expands and more projects and platforms are launched, it could lead to increased adoption and higher prices for crypto.

Advances in crypto-based payment methods

As the market for crypto is growing as more and more businesses are beginning using crypto to be a form of payment. This could result in increased use of crypto in regular transactions and an increase in the cost of transactions.

Increased investment from sovereign wealth funds

These funds are owned by the state as investment vehicles, are beginning to show interest in crypto as a potential asset class. As more of these funds dedicate a part or their entire portfolios to cryptocurrency, this could result in a rise in demand and more expensive prices.

Utilization of crypto to make payment across borders

One of the biggest benefits of crypto is the capability to perform fast and cheap cross-border payments. As more individuals and businesses start to utilize crypto for international transactions, this can lead to a rise in demand and higher costs.

An increasing number of crypto ATM’s

With the amount of ATMs that accept crypto continue to increase, it will become easier for people to buy and keep crypto, which will increase demand and price.

The development of security tokens

Security tokens, which are digital assets that are used to represent ownership in an asset such as real estate or stock, are a rapidly growing area of the crypto market. Since more and more security tokens will be issued and traded, it could lead to increased demand and higher prices for crypto.

Merchants are more likely to adopt the concept.

In the event that more retailers start accepting crypto as a form of payment, it will make it more convenient for consumers to hold and use cryptocurrency, which will drive up demand and prices.

Will crypto be on the grow in 2023? Only time will tell. But with these factors to consider, it’s likely that the cryptocurrency market will have a rebound by 2023. For those looking to invest for the long haul patience and discipline will be key.

It’s been a difficult journey for the cryptocurrency market through 2022. In November, the market had dipped by more than 70 percent from its previous high at the end of November. When things were going downhill, the FTX crash made them look more dire. So, will the crypto market be able to recover by 2023?

Crypto Market Dips are Cyclical

The crypto market, especially Bitcoin has experienced many dips in the past. Each time, it’s rebounded with a big increase.

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

Every Dip is Followed by a Long Bull Run

Similar to what we’ve witnessed in the past, dips are usually followed by a lengthy bull run that finally breaks through the resistance created by the market’s previous highest price. This pattern is evident in not just Bitcoin but also other cryptocurrencies.

Growing Use of Crypto and Blockchain

Blockchain and cryptocurrency technology has come a long way in recent years. With more and better companies and industries taking to it, its usage and acceptance is growing. From gaming to finance cryptocurrency is being utilized in many ways. This growing demand could result in increasing participation in the crypto market, which in turn could increase the price.

A rise in the interest of institutions for crypto

In recent years, we’ve seen a growing curiosity from institutions investing in cryptocurrency. From banks to hedge funds numerous large institutions are beginning to investigate the potential of crypto assets. This increased interest from institutions could bring more stability to the crypto market and result in greater prices.

Government regulations

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

A broader range of blockchain applications

The technology that underlies the majority of cryptocurrencies, blockchain has a wide range of possible applications that go beyond financial transactions. For example, from supply chain management and voting, many and more industries are beginning to look at ways they can utilize blockchain technology. This could drive more investment and interest in crypto.

Advancements in technology

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

Rising global economic uncertainty

In the current instability in the economy caused due to the COVID-19 pandemic as well as other factors, more and more investors are starting to look for safe haven assets such as cryptocurrency and gold. Because the global economic climate remains uncertain and uncertain, this could lead to an increase in demand for crypto and more expensive 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. As more and more people are educated 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 market for crypto is maturing increasing numbers of people are beginning to become aware about it and comprehend it. As understanding and acceptance grows of crypto, it will lead to more people purchasing or holding cryptocurrency, and this can increase prices.

crypto js cdn

Financial decentralization (DeFi) is an area that is rapidly expanding in the crypto market that enables financial services to be created upon blockchain technology. As DeFi continues to grow and more platforms and projects are launched, it could lead to increased adoption and higher prices for crypto.

The development of crypto payment methods

As the crypto market grows increasing numbers of companies are starting accepting crypto payments as a method of payment. This could lead to an increase in the use of crypto in regular transactions, and a rise in prices.

More 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 of these funds dedicate a part of their portfolio to crypto, this could result in a rise in demand and increased prices.

Utilization of crypto to make cross-border payments

One of the biggest benefits of crypto is its ability to make swift and affordable cross-border transactions. As more individuals and businesses begin to use cryptocurrency for international transactions it could result in increased demand and higher costs.

The number of ATMs that accept crypto is increasing.

With the amount of ATMs that accept crypto increase, it will become easier for consumers to purchase and keep cryptocurrency, which can drive up demand and prices.

Security tokens are developed for development

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

Merchants are more likely to adopt the concept.

As more and more retailers accept cryptocurrency as a method of payment, this will make it more convenient for consumers to hold and use cryptocurrency, which will drive up demand and prices.

So, is crypto likely to increase in 2023? It’s only time to find out. But with these factors in mind, it’s likely that the crypto market will see a recovery in 2023. If you’re committed to the long run, being patient and disciplined will be key.