Crypto To Eur

It’s been a tough experience for the crypto market through 2022. In November the market had dropped by 70% from its previous peak on November 20, 2021. Just when the market was looking down and down, the FTX crash turned them even more dire. So, will the crypto market recover in 2023?

Crypto Market Dips are Cyclical

The market for crypto, particularly Bitcoin has had its fair share of dips in the past. Each time, it has bounced back by a massive rally.

For instance, in 2013, Bitcoin reached a peak of $1,160, then fell for a full year before reaching a bottom of $150. In 2017, it broke that record and hit a record highest of $19,600. Then, in 2018, it was trading at $3,100. And in the year 2020 it struck through the resistance and hit a new high of $68,000 in November 2021. Just like that, we’ve witnessed another drop. However, history has shown us that following each 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 lengthy bull run that eventually surpasses the resistance created by the previous high price. This is evident not only in Bitcoin but also in other cryptocurrencies.

Growing Use of Crypto and Blockchain

Blockchain and cryptocurrency technology has progressed a lot in recent years. With more and more businesses and industries taking to the technology, its use and acceptance is rising. From gaming to finance, crypto is being used in a myriad of ways. The growing popularity of crypto could result in more people getting involved in the market which could drive the prices up.

A rise in the interest of institutions for crypto

In recent years we’ve noticed a growing interest from institutional investors in crypto. From hedge funds to banks numerous large institutions are now exploring the possibilities of crypto assets. The increasing interest from institutions could bring more stability to the crypto market and lead to higher prices.

Regulations of the government

As the crypto market is maturing, governments around 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.

Blockchain has many more applications.

The technology that is the basis of the majority of cryptocurrencies, blockchain has a wide range of applications that go beyond just financial transactions. In addition to supply chain management, voting and other systems 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

Crypto and blockchain technology are at the very beginning of development. As progress is made in areas such as scalability and security, the potential of crypto assets will continue to increase. This could lead to more acceptance and higher prices.

Uncertainty in the global economy

Due to the constant instability in the economy caused by the COVID-19 pandemic, as well as other causes increasing numbers of investors are beginning to look for safe haven investments like cryptocurrency and gold. Since the economic outlook for the world remains uncertain it could result in more demand for crypto as well as 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 starting to participate in the crypto market. With increasing numbers of everyday people learn about crypto and how to invest in it, this could lead to an increase in demand and consequently higher prices.

Growing awareness and acceptance of crypto

As the crypto market is maturing, more and more people are beginning to learn about and appreciate the concept. As understanding and acceptance grows of crypto, it will lead to increasing numbers of people purchasing as well as holding the crypto that could drive up prices.

crypto to eur

Decentralized finance (DeFi) is an area that is rapidly expanding in the crypto market that enables financial services to be created using blockchain technology. As DeFi expands and more projects and platforms come online, this could lead to increased adoption and more expensive prices for crypto.

The development of crypto payment methods

As the crypto market grows, more and more companies are beginning using crypto to be a method of payment. This could result in increased usage of crypto in daily transactions and an increase in the cost of transactions.

The increased investment of sovereign wealth funds

The sovereign wealth fund, also known as government-owned instruments for investing, are now beginning to show interest in cryptocurrency as a possible asset class. As more of these funds devote a percentage of their portfolio to crypto, this could increase demand and more expensive prices.

Use of crypto for international payments

One of the main advantages of cryptocurrency is its ability to facilitate swift and affordable cross-border transactions. As more and more people and businesses start to utilize cryptocurrency for international transactions, this can lead to a rise in demand and higher prices.

The number of ATMs that accept crypto is increasing.

As the number of ATMs that accept crypto continue to increase, it will become easier for consumers to purchase and hold crypto, which could boost demand and increase prices.

The 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 a rapidly growing segment of the cryptocurrency market. With the increasing number of security tokens being created and traded, this can lead to a higher demand and consequently higher rates for the crypto.

More adoption by merchants

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

So, is crypto likely to increase in 2023? Only time will tell. However, with these aspects in mind, it’s likely that the cryptocurrency market will have a rebound by 2023. And for those who are looking to invest for the long-term, being patient and disciplined will be key.