If you follow the cryptocurrency market in the last few years, you have probably noticed the significant decline it has experienced in 2022. Since its peak in November 2021, in November 2022 the market has declined by more than 70%.
And while the crypto investors thought they had seen it all, the FTX crashed and pushed the market dip even lower.
There are many reasons for traders and investors to think about what is going to happen next. Was that the end of the crypto world, or is the market going to recover? What can we expect in 2023? Let’s see!
The good news is, there are some true reasons to believe that the crypto market is going to recover in 2023. Here are 3 of them:
This is not the first significant dip of the crypto market
It is not a secret that the most popular cryptocurrency among all, Bitcoin, has suffered some significant bear markets and dips through the years.
For example, in 2013 it fell down from $1,160 to $150, and in 2018 it went from $19,600 to $3,100.
As you know, in November 2021 it reached an ATH of $68,000, and since then there have been some significant dips in the market.
If we have a closer look at Bitcoin price history, we can see that the situation is repeating itself, and there is a reason to believe that Bitcoin will soon rise again to a new all-time high.
Every Bear Market has been followed by a long bull run
If you are aware of the ways the crypto market works, you must know that it is volatile, and it is absolutely normal for significant price reductions to be followed by major price increases. You must also know that every bear market has been followed by a bull run.
Those wild price trends are not only typical for the Bitcoin market, but the whole cryptocurrency market as well. Of course, we look closer at Bitcoin, as its price movements have a major effect on the price of other cryptocurrencies.
Growing use of cryptocurrencies and blockchain
The cryptocurrency acceptance and adoption has also seen significant growth over the past few years. For example, if we look at the gaming industry, we can see how cryptocurrencies are reducing the need for a middleman as there is no need to use debit or credit cards for making payments. Thanks to digital currencies and blockchain technologies, players can also earn rewards, while playing games.
Of course, the gaming industry is not the only one affected by crypto and blockchain technologies. The banking industry has also seen some significant changes.
As the crypto and blockchain use cases have increased, there is one more reason to believe that the cryptocurrency market has a great future ahead of it.
Is the cryptocurrency market going to recover?
The cryptocurrency market is highly volatile, but still there are reasons to believe the crypto winter will be over soon, and the market will recover. What you can do is be patient, and look at cryptocurrencies as a long term investment. Don’t make emotional decisions and think through every investment you make, and of course, never invest more than you are willing to lose.
Unfortunately, we cannot give a final answer to if the crypto market is going to recover soon, all we can do is wait and hope for the best!