Tusk Crypto

It’s been a tough journey for the cryptocurrency market in 2022. As of November, the market had dipped by 70 percent from the previous high at the end of November. When things were getting worse after the FTX crash made them look even 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 seen its fair share of dips over the years. Every time, it’s rebounded by a massive rise.

For instance, in 2013, Bitcoin reached a peak of $1,160, then fell for over a year, reaching a low of $150. In 2017 it broke that record, and hit a new record high of $19,600. Then, in 2018, and it was trading at $3,100. And in 2020, it broke through the 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 at the end of every dip the bull runs.

Every Dip is Followed by a Long Bull Run

Similar to what we’ve witnessed previously, dips are typically followed by a lengthy bull run that finally surpasses the resistance created by the previous high 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 progressed a lot in recent years. With more and more companies and industries taking to the technology, its use and acceptance is increasing. From banking to gaming the use of crypto is increasing in a variety of ways. The growing popularity of crypto could lead to increasing participation in the market and, in turn, increase the price.

The rise in interest of institutions in crypto

In recent times, we’ve seen a growing curiosity from institutions investing in cryptocurrency. From hedge funds to banks, many large institutions are now exploring the potential for crypto-based assets. This increased interest from institutions could bring more stability to the market for crypto and could lead to greater prices.

Regulations from the Government

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

A broader range of blockchain applications

The technology that is the basis of many cryptocurrencies, blockchain, has a wide range of applications that go beyond just financial transactions. In addition to supply chain management, voting and other systems industries are starting to explore how they can make use of blockchain technology. This will increase investment and enthusiasm in crypto.

Technology advancements

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

Rising global economic uncertainty

In the current economic uncertainty caused by the COVID-19 pandemic as well as other factors increasing numbers of investors are beginning to look for safe haven assets such as bitcoin and even gold. Since the economic outlook for the world is uncertain, this could lead to an increase in 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 beginning to participate in the cryptocurrency market. In the future, as more people become aware of crypto and the best ways to invest in it, this could lead to an increase in demand and consequently higher prices.

Growing awareness and acceptance of cryptocurrency

As the crypto market is maturing increasing numbers of people are beginning to learn about it and comprehend it. As the awareness and acceptance of crypto grows, this could lead to more people buying as well as holding the crypto that could raise prices.

tusk crypto

Financial decentralization (DeFi) is a rapidly growing area of the crypto market that enables financial services to be developed using blockchain technology. As DeFi grows 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 increasing numbers of companies are beginning accepting crypto payments as a form of payment. This could result in increased use of crypto in everyday transactions and an increase in the cost of transactions.

Increased investment from sovereign wealth funds

Sovereign wealth funds, which are owned by the state as investment vehicles, are beginning to look at crypto as a potential asset class. As more funds dedicate a part of their assets to digital currencies, this could increase demand and more expensive prices.

Cryptocurrency is used for payment across borders

One of the major benefits of crypto is the ability to facilitate swift and affordable cross-border transactions. As more individuals and businesses are beginning to make use of cryptocurrency for international transactions, it could result in increased demand and higher costs.

Increasing numbers of crypto ATM’s

With the amount of ATMs for crypto continue to increase it will be more convenient for people to buy and keep crypto, which could increase demand and price.

Development of security tokens

Security tokens, also known as digital assets that represent ownership in an asset such as stocks or real estate is a fast-growing sector of the crypto market. With the increasing number of security tokens being created and traded, it could lead to increased demand and higher prices for crypto.

More adoption by merchants

In the event that more merchants accept cryptocurrency as a method of payment, it will make it easier for people to use and hold crypto, which could increase demand and price.

So, will crypto rise in 2023? The only way to know is time. With these things being considered, it’s possible that the crypto market will have a rebound by 2023. And for those who are committed to the long run Being patient and disciplined is crucial.