It’s been a difficult ride for the crypto market until 2022. As of November the market had dropped by 70 percent from its previous high on November 20, 2021. When things were going downhill, the FTX crash turned them even worse. The question is, can the cryptocurrency market rebound in 2023?
Crypto Market Dips are Cyclical
The crypto market, especially Bitcoin has had many dips over the years. Each time, it’s bounced back with a huge rise.
In 2013, for instance, Bitcoin reached a peak of $1,160. Then it fell for a full year before hitting a low of $150. However, in 2017 it broke that record and reached a new high of $19,600. In 2018, it was trading at $3,100. And in 2020, it broke that resistance and hit a new high of $68,000 in November 2021. Just like that, we’ve seen another dip. However, the past has proven that after each 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 prolonged bull run, which eventually surpasses the resistance created by the market’s previous highest price. This pattern is evident not only in Bitcoin but also 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 companies and industries embracing it, its usage and acceptance is rising. From gaming to finance cryptocurrency is being utilized in a variety of ways. And this growing use case could lead to increasing participation in the market and, in turn, drive the prices up.
The rise in interest of institutions in cryptocurrency
In the last few years we’ve witnessed a rising interest from institutional investors in cryptocurrency. From hedge funds to banks, many large institutions are beginning to investigate the potential for crypto-based assets. The increasing interest from institutions can bring stability to the market for crypto and lead to more expensive prices.
Government regulations
As the market for crypto grows as it matures, governments all over the world are beginning to establish more favorable rules for crypto. This will help draw more investors and increase the mainstream adoption of crypto.
More use cases for blockchain
The technology that is the basis of the majority of cryptocurrencies, blockchain is a broad range of potential use cases beyond just financial transactions. From supply chain management to voting systems, more and more industries are beginning to look at ways they can benefit from blockchain technology, which could drive more investment and interest in cryptocurrency.
Technology advancements
Crypto and blockchain technology are at the very beginning of development. As advances continue to be made in areas such as security and scalability, potential of crypto assets will continue to expand. This could result in more acceptance and higher prices.
Rising global economic uncertainty
With the ongoing economic uncertainty caused through the COVID-19 pandemic, as well as other causes increasing numbers of investors are looking for safe haven assets such as cryptocurrency and gold. Because the global economic climate remains uncertain it could result in an increase in demand for crypto and higher prices.
Retail investors are able to earn interest
Institutional investors aren’t the only people who are interested in cryptocurrency. Retail investors, or individual investors are also beginning to invest in the crypto market. With increasing numbers of people become aware of cryptocurrency and investing in it, this could lead to increased demand and higher prices.
A growing number of people are becoming aware of and accepting crypto
As the crypto market grows increasing numbers of people are starting to learn about it and comprehend it. As awareness and acceptance of crypto grows, this could lead to more people purchasing or holding cryptocurrency, and this could increase prices.
landshare crypto price
Decentralized finance (DeFi) is an emerging area of the crypto market, which allows finance services created on top of blockchain technology. As DeFi expands and more projects and platforms are launched, it will lead to a rise in adoption and higher prices for crypto.
Advances in crypto-based payment methods
As the market for crypto continues to grow, more and more companies are beginning using crypto to be a method of payment. This could lead to an increase in the use of crypto in everyday transactions and higher prices.
More investment from 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 of these funds devote a percentage of their portfolio to crypto, it could lead to increased demand and higher prices.
Use of crypto for cross-border payments
One of the major benefits of crypto is the ability to make quick and inexpensive cross-border payments. As more individuals and businesses begin to use cryptocurrency for international transactions it could result in increased the demand for it and a rise in prices.
An increasing number of crypto ATM’s
The number of crypto ATM’s continue to increase it will be more convenient for individuals to purchase and keep crypto, which will boost demand and increase prices.
Development of security tokens
Security tokens, which are digital assets that are used to represent ownership of an asset, such as stock or real estate, are a rapidly growing sector of the crypto market. As more security tokens are issued and traded, it could lead to increased demand and higher prices for crypto.
More adoption by merchants
As more and more merchants begin accepting crypto as a means of payment, it will make it more convenient for consumers to use and hold cryptocurrency, which will increase demand and price.
Will crypto be on the increase in 2023? It’s only time to find out. With these things to consider, it’s likely that the crypto market will have a rebound by 2023. If you’re in it for the long haul patience and discipline is crucial.