Crypto Noun Punks

It’s been a rough ride for the crypto market through 2022. By November, the market had dipped by 70% from its previous peak at the end of November. Just when the market was looking down and down, the FTX crash turned them even more dire. The question is, can the crypto market be able to recover by 2023?

Crypto Market Dips are Cyclical

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

For example, in 2013, Bitcoin reached a peak of $1,160. It then plummeted for a full year before hitting a low of $150. But, in 2017 it broke that record and reached a new high of $19,600. In 2018, it was trading at $3,100. And in 2020, the price broke that resistance and hit a new high of $68,000 in November 2021. Then, just like that we’ve seen another dip. However, history has shown us that at the end of every dip the bull runs.

Every Dip is Followed by a Long Bull Run

Similar to what we’ve witnessed in the past, dips are typically followed by a lengthy bull run that eventually breaks through the resistance created by the market’s previous highest price. This pattern is evident not only in 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 taking to the technology, its use and acceptance is growing. From gaming to finance, crypto is being used in a myriad of ways. This growing demand could result in more people getting involved in the market, which in turn could boost prices.

The rise in interest of institutions in crypto

In recent years, we’ve seen a growing curiosity from institutions investing in crypto. From banks to hedge funds and even large corporations are beginning to investigate the possibilities of crypto assets. The increasing interest from institutions could provide more stability to the crypto market and lead to more expensive prices.

Government regulations

As the crypto market continues to mature and mature, governments across the globe are beginning to develop more favorable regulations for crypto. This could help attract more investors and increase the mainstream adoption of crypto.

A broader range of blockchain applications

The underlying technology behind many cryptocurrencies, blockchain, offers a variety of possible applications beyond just financial transactions. For example, from supply chain management and voting, many and more industries are beginning to look at ways they can benefit from blockchain technology. This will stimulate more investment and excitement in crypto.

Advancements in technology

Blockchain and cryptocurrency technology is still in the early stages of development. As advances continue to be made in areas like scalability and security, the potential of crypto assets will continue to expand. This could result in more adoption and higher prices.

Global economic uncertainty is growing

Due to the constant economic uncertainty caused by the COVID-19 pandemic as well as other factors many investors are looking for safe haven assets like bitcoin and even gold. As the global economic situation is 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 cryptocurrency. Retail investors, also known as individual investors are also beginning to get involved in the market for crypto. As more and more everyday 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 learn about it and comprehend the concept. As the awareness and acceptance of crypto grows, this could lead to more people buying as well as holding the crypto that can raise prices.

crypto noun punks

Financial decentralization (DeFi) is a rapidly growing area of the crypto market that enables the provision of financial services created on top of blockchain technology. As DeFi grows and more platforms and projects come online, this could result in increased use and higher prices for crypto.

The development of crypto payment methods

As the crypto market grows as more and more businesses are starting using crypto to be a method of payment. This could result in increased usage of crypto in daily transactions and higher prices.

More investment from sovereign wealth funds

The sovereign wealth fund, also known as government-owned investments, are now beginning to show interest in crypto as an asset class. As more of these funds devote a percentage of their assets to digital currencies, this could increase demand and higher prices.

Utilization of crypto to make cross-border payments

One of the biggest benefits of cryptocurrency is its capability to perform quick and inexpensive cross-border payments. As more businesses and individuals start to utilize cryptocurrency for international transactions, it could result in increased the demand for it and a rise in prices.

Increasing numbers of crypto ATM’s

With the amount of ATMs for crypto increase it will be more convenient for consumers to purchase and keep crypto, which could boost demand and increase prices.

Security tokens are developed for development

Security tokens, or digital assets that are used to represent ownership of an asset, like stock or real estate are rapidly expanding area of the crypto market. Since more and more security tokens will be created and traded, it can lead to a higher demand and higher prices for crypto.

More adoption by merchants

In the event that more businesses start accepting crypto as a means of payment, this will make it easier for people to use and hold crypto, which can boost demand and increase prices.

So, will crypto increase in 2023? It’s only time to find out. With these things being considered, it’s likely that the crypto market could be able to see a rebound in 2023. If you’re committed to the long run Being patient and disciplined is essential.