Kpets Crypto

It’s been a rough ride for the crypto market in 2022. In November the market was down by 70 percent from the previous high in November 2021. Just when the market was looking down and down, the FTX crash turned things worse. The question is, can the crypto market be able to recover by 2023?

Crypto Market Dips are Cyclical

The market for crypto, particularly Bitcoin has had its fair share of dips over the years. And every time, it’s rebounded with a huge rise.

In 2013, for instance, Bitcoin reached a peak of $1,160. It then plummeted for a full year, reaching a low of $150. In 2017 it broke that record, and hit a new high of $19,600. Fast forward to 2018, it was trading at $3,100. And in 2020, it broke that resistance and hit a new highest of $68,000 in November 2021. Then, just like that we’ve seen another dip. However, the past has proven 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 tend to be followed by a lengthy bull run that finally surpasses the resistance created by the previous market’s highest price. This is evident not only in Bitcoin but also other cryptocurrencies.

Growing Use of Crypto and Blockchain

Blockchain technology and cryptography have progressed a lot in the last few years. With more and more businesses and industries embracing it, its usage and acceptance is increasing. From finance to gaming cryptocurrency is being utilized in many ways. And this growing use case could lead to more people being involved in the market, which in turn could drive the prices up.

Increased institutional interest in crypto

In recent times we’ve witnessed a rising demand from investors of institutional scale in crypto. From banks to hedge funds, many large institutions are now exploring the possibilities of crypto assets. The increased interest of institutions could provide more stability to the market for crypto and could lead to more expensive prices.

Regulations from the Government

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

Blockchain has many more applications.

The technology that underlies the majority of cryptocurrencies, blockchain has a wide range of potential use cases that go beyond financial transactions. From supply chain management to voting systems, more industries are exploring ways they can utilize blockchain technology. This will drive more investment and interest in crypto.

Technology advancements

Blockchain technology and cryptography are at the very beginning of development. As advancements continue to be made in areas such as security and scalability, the potential of cryptocurrency assets will continue to increase. This could lead to more use and increase in prices.

Global economic uncertainty is growing

Due to the constant economic uncertainty caused through the COVID-19 pandemic, as well as other causes increasing numbers of investors are starting to look for safe haven assets such as gold and crypto. As the global economic situation is uncertain it could result in increased demand for crypto and more expensive prices.

Retail investors are able to earn interest

The institutional investors aren’t alone in one who’s showing an interest in crypto. Retail investors, also known as individual investors, are also starting to invest in the crypto market. As more and more people are educated about crypto and how to invest in it this could result in increased demand and higher prices.

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

As the crypto market continues to mature as more and more people are beginning to learn about and understand it. As understanding and acceptance grows of crypto, this could lead to more people purchasing as well as holding the crypto that can raise prices.

kpets crypto

The Decentralized Finance (DeFi) is a rapidly growing area of the crypto market, which allows financial services to be built on top of blockchain technology. As DeFi continues to grow and more platforms and projects come online, this could lead to increased adoption and higher prices for crypto.

Advances in crypto-based payment methods

As the crypto market is growing increasing numbers of companies are beginning using crypto to be a method of payment. This could lead to an increase in the usage of crypto in daily transactions and an increase in the cost of transactions.

The increased investment of sovereign wealth funds

These funds are government-owned investment vehicles, are starting to look at cryptocurrency as a possible asset class. As more of these funds devote a percentage of their portfolio to crypto, it could increase demand and higher prices.

Use of crypto for cross-border payments

One of the major benefits of crypto is its ability to make fast and cheap cross-border payments. As more and more people and businesses begin to use crypto for international transactions, this can lead to a rise in demand and higher prices.

An increasing number of crypto ATM’s

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

Security tokens are developed for development

Security tokens, or digital assets that represent ownership in an asset like real estate or stock, are a rapidly growing area of the crypto market. With the increasing number of security tokens being created and traded, this could lead to increased demand and higher rates for the crypto.

A greater adoption rate by merchants

In the event that more merchants begin accepting cryptocurrency as a method of payment, this will make it more convenient for customers to use and hold crypto, which could drive up demand and prices.

Will crypto be on the increase in 2023? The only way to know is time. However, with these aspects in mind, it’s possible that the crypto market could have a rebound by 2023. For those in it for the long haul patience and discipline will be key.