Moonpug Crypto

It’s been a tough journey for the cryptocurrency market through 2022. As of November the market had dropped by 70% from its previous peak in November 2021. And just when things were going downhill after the FTX crash turned things more dire. The question is, can the crypto market be able to recover by 2023?

Crypto Market Dips are Cyclical

The cryptocurrency market, specifically Bitcoin, has seen its fair share of dips in the past. Each time, it’s rebounded by a massive rise.

For example, in 2013, Bitcoin reached a peak of $1,160, then fell for a full year, reaching a low of $150. But, in 2017, it broke that record and reached a new high of $19,600. In 2018, and it was trading at $3,100. In the year 2020 it struck through the resistance and reached a new highest of $68,000 in November 2021. Then, just like that we’ve witnessed another drop. However, history has shown us that at the end of every dip, there’s a bull run.

Every Dip is Followed by a Long Bull Run

As we’ve seen previously, dips tend to be followed by a prolonged bull run that finally surpasses the resistance created by the market’s previous highest price. This is evident not only in Bitcoin but also in other cryptocurrency.

Growing Use of Crypto and Blockchain

Blockchain technology and cryptography have come a long way in the last few years. With more and more companies and industries adopting it, its usage and acceptance is rising. From banking to gaming, crypto is being used in a variety of ways. This growing demand can lead to more people getting involved in the crypto market, which in turn could increase the price.

Increased institutional interest in crypto

In the last few years we’ve noticed a growing interest from institutional investors in cryptocurrency. From hedge funds to banks, many large institutions are beginning to investigate the possibilities for crypto-based assets. The increased interest of institutions could provide more stability to the market for crypto and lead to more expensive prices.

Regulations from the Government

As the crypto market continues to mature, governments around the world are starting to create more favorable regulations for cryptocurrency. This is likely to attract more investors and boost the acceptance of crypto in general.

More use cases for blockchain

The underlying technology behind many cryptocurrency, blockchain, has a wide range of applications that go beyond just financial transactions. In addition to supply chain management, voting and other systems companies are beginning to look at ways they can utilize blockchain technology, which could increase investment and enthusiasm in cryptocurrency.

Technologies are constantly evolving.

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

Uncertainty in the global economy

With the ongoing economic uncertainty caused due to the COVID-19 pandemic as well as other factors many investors are starting to look for safe haven assets like bitcoin and even gold. As the global economic situation remains uncertain, this could lead to increased demand for crypto and more expensive prices.

Interest from retail investors

The institutional investors aren’t alone in people who are interested in cryptocurrency. Retail investors, or even individual investors, are also starting to get involved in the cryptocurrency market. With increasing numbers of everyday people are educated about cryptocurrency and investing in it This could result in more demand and higher prices.

The growing awareness and acceptance of cryptocurrency

As the crypto market grows as more and more people are beginning to become aware about and understand it. As awareness and acceptance of crypto grows it could result in more people purchasing as well as holding the crypto that could increase prices.

moonpug crypto

Decentralized finance (DeFi) is an emerging area of the crypto market that enables the provision of financial services developed on top of blockchain technology. As DeFi continues to grow 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, more and more companies are starting accepting crypto payments as a means of payment. This could result in increased use of crypto in everyday transactions, and a rise in prices.

Increased investment from sovereign wealth funds

The sovereign wealth fund, also known as government-owned investment vehicles, are starting to look at crypto as an asset class. As more of these funds devote a percentage or their entire portfolios to cryptocurrency, this could result in a rise in demand and higher prices.

Use of crypto for payment across borders

One of the biggest benefits of crypto is its ability to facilitate swift and affordable cross-border transactions. As more and more people 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

With the amount of ATMs that accept crypto increase it will be easier for people to buy and hold crypto, which will boost demand and increase prices.

The development of security tokens

Security tokens, or digital assets that signify ownership of an asset, such as real estate or stock are rapidly expanding sector of the crypto market. As more security tokens are created and traded, this could lead to increased demand and consequently higher rates for the crypto.

More adoption by merchants

As more and more retailers start accepting crypto as a means of payment, it makes it easier for consumers to hold and use crypto, which can increase demand and price.

So, is crypto likely to increase in 2023? Only time will tell. With these things in mind, it’s possible that the crypto market will be able to see a rebound in 2023. And for those who are looking to invest for the long haul Being patient and disciplined will be key.