Eland Crypto

It’s been a difficult experience for the crypto market in 2022. As of November the market had dropped by more than 70 percent from the previous high at the end of November. When things were looking down, the FTX crash turned things even worse. So, will the crypto market recover in 2023?

Crypto Market Dips are Cyclical

The crypto market, especially Bitcoin has experienced its fair share of dips over the years. And every time, it has bounced back by a massive increase.

For instance, in 2013, Bitcoin reached a peak of $1,160, then fell for more than a year before reaching a bottom of $150. However, in 2017 it broke that record and reached a new high of $19,600. Fast forward to 2018, the price was at $3,100. And in 2020, it broke through the resistance and reached a new high of $68,000 in November 2021. And just like that, we’ve witnessed another drop. But history shows us that after each dip there’s a bull-run.

Every Dip is Followed by a Long Bull Run

As we’ve seen previously, dips are usually followed by a prolonged bull run that finally surpasses the resistance created 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 progressed a lot in the last few years. With more and more businesses and industries adopting the technology, its use and acceptance is growing. From finance to gaming, crypto is being used in a variety of ways. The growing popularity of crypto could lead to more people being involved in the market and, in turn, boost prices.

Increased institutional interest in crypto

In the last few years we’ve witnessed a rising curiosity from institutions investing in cryptocurrency. From hedge funds to banks numerous large institutions are starting to explore the potential for crypto-based assets. The increasing interest from institutions could provide more stability to the crypto market and could lead to more expensive prices.

Government regulations

As the market for crypto continues to mature and mature, governments across the globe are starting to create more favorable regulations for crypto. This could help attract more investors and boost the acceptance of crypto in general.

More use cases for blockchain

The underlying technology behind many cryptocurrency, blockchain, offers a variety of applications that go that go beyond financial transactions. In addition to supply chain management, voting and other systems companies are exploring ways they can benefit from blockchain technology. This could increase investment and enthusiasm in crypto.

Technologies are constantly evolving.

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

Global economic uncertainty is growing

In the current economic uncertainty caused due to the COVID-19 pandemic as well as other factors, more and more investors are beginning to look for safe haven assets like gold and crypto. Since the economic outlook for the world is uncertain it could result in an increase in demand for crypto and higher prices.

Retail investors are able to earn interest

The institutional investors aren’t alone in people who are interested in cryptocurrency. Retail investors, or even individual investors are also beginning to get involved in the crypto market. As more and more everyday people are educated about crypto and how to invest in it This could result in an increase in demand and consequently higher prices.

A growing number of people are becoming aware of and accepting crypto

As the crypto market grows, more and more people are beginning to learn about and understand it. As awareness and acceptance of cryptocurrency grows, this could lead to more people purchasing or holding cryptocurrency, and this could drive up prices.

eland crypto

The Decentralized Finance (DeFi) is a rapidly growing area of the crypto market that enables the provision of financial services developed upon blockchain technology. As DeFi expands and more platforms and projects come online, this will lead to a rise in adoption and higher prices for crypto.

Advances in crypto-based payment methods

As the crypto market grows as more and more businesses are starting accepting crypto payments as a form of payment. This could lead to increased usage of crypto in daily transactions, and a rise in prices.

The increased investment of sovereign wealth funds

These funds are government-owned investment vehicles, are now beginning to show interest in crypto as an asset class. As more of these funds devote a percentage or their entire portfolios to cryptocurrency, this could lead to increased demand and increased prices.

Utilization of crypto to make cross-border payments

One of the major benefits of crypto is the ability to make fast and cheap cross-border payments. As more individuals and businesses start to utilize cryptocurrency for international transactions, this could lead to increased demand and higher costs.

An increasing number of crypto ATM’s

The number of ATMs that accept crypto continue to increase it will be more convenient for consumers to purchase and hold crypto, which could increase demand and price.

Security tokens are developed for development

Security tokens, which are digital assets that are used to represent ownership of an asset, like real estate or stock, are a rapidly growing segment of the cryptocurrency market. Since more and more security tokens will be created and traded, this could lead to increased demand and consequently higher rates for the crypto.

More adoption by merchants

As more and more businesses accept cryptocurrency as a method of payment, this will make it more convenient for customers to hold and use cryptocurrency, which will boost demand and increase prices.

So, is crypto likely to grow in 2023? Only time will tell. With these things in mind, it’s possible that the cryptocurrency market will be able to see a rebound in 2023. For those in it for the long haul patience and discipline will be key.