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It’s been a difficult ride for the crypto market in 2022. In November, the market had dipped by 70 percent from the previous high on November 20, 2021. And just when things were looking down after the FTX crash made them look worse. The question is, can the crypto market recover in 2023?

Crypto Market Dips are Cyclical

The cryptocurrency market, specifically Bitcoin has had many dips in the past. Each time, it’s bounced back with a huge rally.

For instance, in 2013, Bitcoin reached a peak of $1,160. Then it fell for over a year before reaching a bottom of $150. In 2017, it broke that record and reached a new high of $19,600. Fast forward to 2018, the price was at $3,100. And in 2020, the price broke that resistance, and reached a record peak of $68,000 in the month of November 2021. Then, just like that we’ve had another dip. However, the past has proven that after each dip there’s a bull-run.

Every Dip is Followed by a Long Bull Run

As we’ve seen in the past, dips are usually followed by a prolonged bull run, which eventually overcomes the resistance set by the previous market’s highest price. This pattern is evident not only in Bitcoin but also in other cryptocurrency.

Growing Use of Crypto and Blockchain

Crypto and blockchain technology have come a long way in the last few years. With more and better companies and industries adopting it, its usage and acceptance is rising. From gaming to finance the use of crypto is increasing in a variety of ways. This growing demand can lead to increasing participation in the market and, in turn, boost prices.

A rise in the interest of institutions for cryptocurrency

In recent times we’ve witnessed a rising curiosity from institutions investing in cryptocurrency. From banks to hedge funds numerous large institutions are beginning to investigate the potential in crypto currencies. The increasing interest from institutions could provide more stability to the market for crypto and result in more expensive prices.

Regulations from the Government

As the crypto market grows and mature, governments across the globe are beginning to develop more favorable rules for crypto. This is likely to attract more investors and boost the adoption rate of crypto.

A broader range of blockchain applications

The technology that underlies the majority of cryptocurrencies, blockchain offers a variety of applications that go beyond the realm of financial transactions. In addition to supply chain management, voting and other systems and more industries are exploring ways they can utilize blockchain technology. This could drive more investment and interest in crypto.

Technologies are constantly evolving.

Blockchain technology and cryptography are still in the beginning stages of development. As advancements continue to be made in areas like security and scalability, the potential of crypto assets will expand. This could lead to greater acceptance and higher prices.

Rising global economic uncertainty

Due to the constant economic uncertainty caused through the COVID-19 pandemic as well as other factors increasing numbers of investors are starting to look for safe haven investments like cryptocurrency and gold. As the global economic situation remains uncertain it could result in an increase in demand for crypto and increased prices.

Retail investors are able to earn interest

Institutional investors aren’t the only one who’s showing an interest in cryptocurrency. Retail investors, or even individual investors are also beginning to invest in the market for crypto. With increasing numbers of people learn about cryptocurrency and investing in it This could result in an increase in demand and consequently higher prices.

Growing awareness and acceptance of cryptocurrency

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

mutt crypto price

Decentralized finance (DeFi) is an emerging area of the crypto market that allows the provision of financial services developed using blockchain technology. As DeFi expands and more projects and platforms come online, this will lead to a rise in adoption and increased prices for crypto.

Advances in crypto-based payment methods

As the crypto market continues to grow, more and more companies are beginning accepting crypto payments as a method of payment. This could lead to increased use of crypto in regular transactions and higher prices.

The increased investment of sovereign wealth funds

Sovereign wealth funds, which are state-owned investments, are now beginning to explore cryptocurrency as a possible asset class. As more of these funds devote a percentage or their entire portfolios to cryptocurrency, this could increase demand and higher prices.

Cryptocurrency is used for payment across borders

One of the major benefits of crypto is the capability to perform fast and cheap cross-border payments. As more businesses and individuals 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 ATMs for crypto continue to increase it will be more convenient for people to buy and keep cryptocurrency, which can drive up demand and prices.

Development of security tokens

Security tokens, or digital assets that are used to represent ownership in an asset like stock or real estate, are a rapidly growing sector of the crypto market. Since more and more security tokens will be issued and traded, this could lead to increased demand, and thus higher costs for cryptocurrency.

A greater adoption rate by merchants

In the event that more retailers start accepting crypto as a form of payment, this makes it easier for consumers to use and hold crypto, which can increase demand and price.

So, will crypto increase in 2023? It’s only time to find out. But with these factors being considered, it’s possible that the cryptocurrency market will see a recovery in 2023. And for those who are committed to the long run, being patient and disciplined will be key.

It’s been a difficult journey for the cryptocurrency market through 2022. As of November, the market had dipped by 70 percent from its previous high in November 2021. And just when things were going downhill, the FTX crash turned things even more dire. What is the likelihood that the crypto market recover in 2023?

Crypto Market Dips are Cyclical

The crypto market, especially Bitcoin has experienced many dips over the years. And every time, it’s bounced back by a massive increase.

For example, in 2013, Bitcoin reached a peak of $1,160, then fell for over a year before reaching a bottom of $150. In 2017, it broke that record and hit a record highest of $19,600. In 2018, it was trading at $3,100. In 2020, it broke that resistance and hit a new high of $68,000 in November 2021. And just like that, we’ve seen another dip. However, the past has proven that after 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 are usually followed by a lengthy bull run that finally surpasses the resistance created by the previous high price. This pattern can be seen in not just Bitcoin but also in other cryptocurrencies.

Growing Use of Crypto and Blockchain

Crypto and blockchain technology have progressed a lot in recent years. With more and more businesses and industries taking to it, its usage and acceptance is rising. From banking to gaming the use of crypto is increasing in many ways. This growing demand can lead to more people being involved in the market, which in turn could drive the prices up.

Increased institutional interest in cryptocurrency

In the last few years we’ve witnessed a rising interest from institutional investors in crypto. From hedge funds to banks numerous large institutions are now exploring the potential in crypto currencies. The increasing interest from institutions could provide more stability to the market for crypto and lead to more expensive prices.

Regulations from the Government

As the market for crypto is maturing and mature, governments across the globe are beginning to establish more favorable regulations for crypto. This will help draw more investors and boost the adoption rate of crypto.

Blockchain has many more applications.

The technology that is the basis of many cryptocurrencies, blockchain, has a wide range of applications that go that go beyond financial transactions. For example, from supply chain management and voting, many companies are exploring ways they can benefit from blockchain technology, which could drive more investment and interest in crypto.

Advancements in technology

Crypto and blockchain technology 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 expand. This could lead to more use and increase in prices.

Global economic uncertainty is growing

In the current instability in the economy caused due to the COVID-19 pandemic, as well as other causes many investors are starting to look for safe haven assets such as gold and crypto. Because the global economic climate is uncertain it could result in increased demand for crypto and more expensive prices.

Retail investors are able to earn interest

Investors from institutions aren’t the only one who’s showing an interest in cryptocurrency. Retail investors, also known as individual investors, are also starting to get involved in the cryptocurrency market. In the future, as more everyday people are educated about crypto and the best ways to invest in it, this could lead to more demand and higher prices.

Growing awareness and acceptance of cryptocurrency

As the crypto market is maturing, more and more people are beginning to learn about and appreciate it. As the awareness and acceptance of cryptocurrency grows, this could lead to more people purchasing or holding cryptocurrency, and this could drive up prices.

$mutt crypto price

Financial decentralization (DeFi) is an emerging area of the crypto market, which allows finance services developed using blockchain technology. As DeFi expands and more platforms and projects become available, this could result in increased use and increased prices for crypto.

Advances in crypto-based payment methods

As the crypto market is growing increasing numbers of companies are beginning to accept crypto as a form of payment. This could lead to increased use of crypto in regular transactions and higher prices.

The increased investment of sovereign wealth funds

These funds are government-owned instruments for investing, are now beginning to look at cryptocurrency as a possible asset class. As more funds allocate a portion or their entire portfolios to cryptocurrency, this could lead to increased demand and increased prices.

Use of crypto for international payments

One of the major benefits of cryptocurrency is its capability to perform quick and inexpensive cross-border payments. As more and more people and businesses are beginning to make use of cryptocurrency for international transactions it could result in increased demand and higher prices.

The number of ATMs that accept crypto is increasing.

The number of ATMs that accept crypto continue to increase it will be more convenient for people to buy and store crypto, which will boost demand and increase prices.

Security tokens are developed for development

Security tokens, or digital assets that represent ownership in an asset such as stock or real estate are rapidly expanding area of the crypto market. Since more and more security tokens will be issued and traded, it can lead to a higher demand and higher rates for the crypto.

More adoption by merchants

In the event that more retailers begin accepting cryptocurrency as a method of payment, this makes it easier for people to use and hold crypto, which can increase demand and price.

Will crypto be on the grow in 2023? Only time will tell. But with these factors being considered, it’s possible that the cryptocurrency market will be able to see a rebound in 2023. And for those who are in it for the long haul, being patient and disciplined will be key.