Goldfinch Protocol Crypto

It’s been a difficult journey for the cryptocurrency market through 2022. By November the market was down by more than 70 percent from the previous high in November 2021. Just when the market was looking down and down, the FTX crash turned things even worse. What is the likelihood that the cryptocurrency market rebound in 2023?

Crypto Market Dips are Cyclical

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

For instance, in 2013, Bitcoin reached a peak of $1,160. Then it fell for a full year before reaching a bottom of $150. But, in 2017, it broke that record and reached a new highest of $19,600. Then, in 2018, it was trading at $3,100. And in 2020, the price broke through the resistance, and reached a record high of $68,000 in November 2021. Just like that, we’ve had another dip. But history shows us that following each dip there’s a bull-run.

Every Dip is Followed by a Long Bull Run

Just like we’ve seen in the past, dips tend to be followed by a lengthy bull run that eventually overcomes the resistance set by the previous high price. This pattern can be seen not only in Bitcoin but also in other cryptocurrencies.

Growing Use of Crypto and Blockchain

Crypto and blockchain technology have come a long way in the last few years. With more and more companies and industries embracing the technology, its use and acceptance is increasing. From banking to gaming, crypto is being used in many ways. And this growing use case could result in more people getting involved in the market, which in turn could drive the prices up.

A rise in the interest of institutions for crypto

In recent years we’ve noticed a growing curiosity from institutions investing in cryptocurrency. From banks to hedge funds, many large institutions are starting to explore the potential of crypto assets. The increasing interest from institutions could provide more stability to the crypto market and lead to greater prices.

Regulations of the government

As the crypto market continues to mature, governments around the world are beginning to develop more favorable regulations for cryptocurrency. This is likely to attract more investors and boost the mainstream adoption of crypto.

A broader range of blockchain applications

The technology that is the basis of the majority of cryptocurrencies, blockchain offers a variety of possible applications beyond the realm of financial transactions. In addition to supply chain management, voting and other systems and more industries are starting to explore how they can make use of blockchain technology. This will stimulate more investment and excitement in crypto.

Technologies are constantly evolving.

Blockchain technology and cryptography are at the very beginning of development. As advances continue to be made in areas like security and scalability, the potential of cryptocurrency assets will continue to increase. This could result in more adoption and higher prices.

Uncertainty in the global economy

Due to the constant economic uncertainty caused through the COVID-19 pandemic, as well as other causes many investors are beginning to look for safe haven assets such as 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

Investors from institutions aren’t the only people who are interested in cryptocurrency. Retail investors, or individual investors, are also starting to participate in the crypto market. With increasing numbers of people learn about crypto and how to invest in it This could result in increased demand and higher prices.

Growing awareness and acceptance of cryptocurrency

As the crypto market grows increasing numbers of people are beginning to learn about and understand it. As understanding and acceptance of crypto grows, this could lead to more people purchasing and holding crypto, which can drive up prices.

goldfinch protocol crypto

The Decentralized Finance (DeFi) is a rapidly growing area of the crypto market that enables the provision of financial services developed using blockchain technology. As DeFi expands and more platforms and projects become available, this could result in increased use and higher prices for crypto.

Developments in crypto payment methods

As the market for crypto grows, more and more companies are beginning using crypto to be a method of payment. This could lead to increased use of crypto in everyday transactions and higher prices.

Increased investment from sovereign wealth funds

These funds are owned by the state as investment vehicles, are now beginning to look at cryptocurrency as a possible asset class. As more funds devote a percentage of their portfolio to crypto, it could increase demand and increased prices.

Use of crypto for cross-border payments

One of the biggest benefits of crypto is its ability to facilitate fast and cheap cross-border payments. As more individuals and businesses are beginning to make use of cryptocurrency for international transactions, this could lead to increased demand and higher prices.

Increasing numbers of crypto ATM’s

The number of crypto ATM’s continue to increase it will be more convenient for consumers to purchase and store crypto, which could increase demand and price.

The development of security tokens

Security tokens, or digital assets that represent ownership of an asset, such as stocks or real estate are rapidly expanding sector of the crypto market. As more security tokens are issued and traded, this could result in a rise in demand and higher costs for cryptocurrency.

Merchants are more likely to adopt the concept.

With the increasing number of businesses accept crypto as a means of payment, it will make it more convenient for consumers to use and hold crypto, which can drive up demand and prices.

So, is crypto likely to rise in 2023? The only way to know is time. However, with these aspects being considered, it’s likely 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.