It’s been a difficult experience for the crypto market in 2022. In November the market was down by more than 70 percent from its previous high in November 2021. When things were going downhill after 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 cryptocurrency market, specifically Bitcoin has experienced many dips over the years. And every time, it has bounced back by a massive increase.
In 2013, for instance, Bitcoin reached a peak of $1,160, then fell for more than a year before reaching a bottom of $150. But, in 2017 it broke that record and hit a record record high of $19,600. In 2018, and it was trading at $3,100. In the year 2020 it struck that resistance and hit a new high of $68,000 in November 2021. And just like that, we’ve witnessed another drop. But history shows us that at the end of every dip there’s a bull-run.
Every Dip is Followed by a Long Bull Run
Similar to what we’ve witnessed before, fall-offs are typically followed by a long bull run that eventually breaks through the resistance created by the previous high price. This is evident in not just Bitcoin but also in other cryptocurrency.
Growing Use of Crypto and Blockchain
Blockchain and cryptocurrency technology has made significant progress in the last few years. With more and more businesses and industries embracing it, its usage and acceptance is increasing. From banking to gaming, crypto is being used in a myriad of ways. This growing demand could result in more people getting involved in the crypto market and, in turn, drive the prices up.
A rise in the interest of institutions for crypto
In recent years we’ve witnessed a rising curiosity from institutions investing in crypto. From hedge funds to banks, many large institutions are now exploring the possibilities in crypto currencies. The increasing interest from institutions can bring stability to the crypto market and lead to more expensive prices.
Regulations of the government
As the market for crypto continues to mature and mature, governments across the globe are beginning to develop more favorable regulations for crypto. This could help attract more investors as well as increase the acceptance of crypto in general.
A broader range of blockchain applications
The technology that underlies many cryptocurrencies, blockchain, is a broad range of potential use cases beyond just financial transactions. For example, from supply chain management and voting, many industries are exploring ways they can make use of blockchain technology, which could drive more investment and interest in crypto.
Blockchain technology and cryptography are still in the beginning stages of development. As advancements continue to be made in areas like scalability and security, the potential of crypto assets will continue to grow. This could lead to more acceptance and higher prices.
Global economic uncertainty is growing
Due to the constant economic uncertainty brought on due to the COVID-19 pandemic and other factors increasing numbers of investors are beginning to look for safe haven assets like bitcoin and even gold. As the global economic situation remains uncertain it could result in an increase in demand for crypto and increased prices.
Interest from retail investors
Institutional investors aren’t the only people who are interested in crypto. Retail investors, or individual investors are also beginning to get involved in the cryptocurrency market. As more and more everyday people learn about crypto and how to invest in it this could result in increased demand and higher prices.
The growing awareness and acceptance of crypto
As the crypto market is maturing, more and more people are beginning to learn about and understand the concept. As understanding and acceptance grows of crypto, this could lead to more people buying and holding crypto, which could increase prices.
Financial decentralization (DeFi) is an area that is rapidly expanding in the crypto market, which allows the provision of financial services created using blockchain technology. As DeFi expands and more projects and platforms become available, this could result in increased use and increased prices for crypto.
Developments in crypto payment methods
As the market for crypto is growing as more and more businesses are beginning using crypto to be a form of payment. This could result in increased usage of crypto in daily transactions and higher prices.
Increased investment from sovereign wealth funds
The sovereign wealth fund, also known as government-owned investments, are beginning to show interest in crypto as a potential asset class. As more funds allocate a portion of their portfolio to crypto, this could result in a rise in demand and increased prices.
Utilization of crypto to make payment across borders
One of the biggest benefits of cryptocurrency is its ability to make quick and inexpensive cross-border payments. As more and more people and businesses start to utilize cryptocurrency for international transactions, this can lead to a rise in the demand for it and a rise in prices.
The number of ATMs that accept crypto is increasing.
The number of ATMs for crypto increase it will be easier for people to buy and store crypto, which will drive up demand and prices.
Security tokens are developed for development
Security tokens, which are digital assets that signify ownership in an asset like real estate or stock is a fast-growing sector of the crypto market. Since more and more security tokens will be issued and traded, this could lead to increased demand and consequently higher rates for the crypto.
More adoption by merchants
In the event that more merchants accept cryptocurrency as a method of payment, this will make it more convenient for consumers to hold and use crypto, which could drive up demand and prices.
Will crypto be on the rise in 2023? The only way to know is time. But with these factors to consider, it’s likely that the cryptocurrency market will have a rebound by 2023. If you’re looking to invest for the long haul patience and discipline will be key.