Crypto Rocket Bunny

It’s been a difficult experience for the crypto market until 2022. In November the market had dropped by more than 70 percent from its previous high at the end of November. Just when the market was looking down and down, the FTX crash turned things even more dire. What is the likelihood that 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 bounced back by a massive rise.

For example, in 2013, Bitcoin reached a peak of $1,160. Then it fell for more than a year before reaching a bottom of $150. In 2017, it broke that record and reached a new record high of $19,600. Fast forward to 2018, it was trading at $3,100. And in 2020, the price broke through the resistance and reached a new peak of $68,000 in the month of November 2021. And just like that, we’ve had another dip. However, the past has proven that following each 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 prolonged bull run, which eventually surpasses the resistance created by the previous market’s highest price. This pattern is evident in not just Bitcoin but also in other cryptocurrency.

Growing Use of Crypto and Blockchain

Blockchain technology and cryptography have made significant progress in recent years. With more and better companies and industries adopting the technology, its use and acceptance is rising. From finance to gaming, crypto is being used in a variety of ways. The growing popularity of crypto could lead to more people getting involved in the crypto market, which in turn could boost prices.

A rise in the interest of institutions for cryptocurrency

In recent times we’ve witnessed a rising interest from institutional investors in cryptocurrency. From hedge funds to banks and even large corporations are beginning to investigate the potential for crypto-based assets. The increasing interest from institutions could provide more stability to the market for crypto and result in more expensive prices.

Government regulations

As the market for crypto continues to mature as it matures, governments all over the world are beginning to develop more favorable regulations for cryptocurrency. This is likely to attract more investors and increase the adoption rate of crypto.

More use cases for blockchain

The underlying technology behind many cryptocurrency, blockchain, offers a variety of potential use cases that go beyond financial transactions. For example, from supply chain management and voting, many companies are exploring ways they can utilize blockchain technology, which could drive more investment and interest in cryptocurrency.

Advancements in technology

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

Uncertainty in the global economy

With the ongoing economic uncertainty brought on by the COVID-19 pandemic, as well as other causes, more and more investors are starting to look for safe haven assets like gold and crypto. Because the global economic climate is uncertain it could result in more demand for crypto as well as increased prices.

Interest from retail investors

Investors from institutions aren’t the only one who’s showing an interest in crypto. Retail investors, also known as individual investors, are also starting to participate in the crypto market. In the future, as more people are educated about crypto and the best ways to invest 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 grows, more and more people are beginning to learn about and appreciate the concept. As the awareness and acceptance of crypto grows, this could lead to more people buying and holding crypto, which can increase prices.

crypto rocket bunny

Financial decentralization (DeFi) is an area that is rapidly expanding in the crypto market that allows the provision of financial services developed on top of blockchain technology. As DeFi grows and more platforms and projects come online, this will lead to a rise in adoption and more expensive prices for crypto.

Developments in crypto payment methods

As the crypto market is growing increasing numbers of companies are beginning accepting crypto payments as a form of payment. This could lead to an increase in the use of crypto in regular transactions and an increase in the cost of transactions.

The increased investment of sovereign wealth funds

Sovereign wealth funds, which are owned by the state as investments, are starting to look at crypto as a potential asset class. As more funds allocate a portion of their assets to digital currencies, this could increase demand and increased prices.

Cryptocurrency is used for cross-border payments

One of the biggest benefits of crypto is its ability to facilitate fast and cheap cross-border payments. As more businesses and individuals begin to use crypto for international transactions, it could result in increased demand and higher prices.

An increasing number of crypto ATM’s

The number of ATMs that accept crypto continue to grow it will be more convenient for people to buy and hold crypto, which could boost demand and increase prices.

Development of security tokens

Security tokens, which are digital assets that signify ownership of an asset, such as stock or real estate, are a rapidly growing segment of the cryptocurrency market. Since more and more security tokens will be created and traded, this could result in a rise in demand, and thus higher prices for crypto.

A greater adoption rate by merchants

As more and more merchants accept crypto as a form of payment, this will make it more convenient for customers to hold and use crypto, which can boost demand and increase prices.

So, is crypto likely to rise in 2023? Only time will tell. However, with these aspects in mind, it’s likely that the crypto market will see a recovery in 2023. And for those who are in it for the long haul, being patient and disciplined is crucial.