The crypto coaster might go for another ride after experiencing a plunge last year. Recently, faint signs have been thrilling and dramatic.
Since the fall of FTX, the crypto market has been dwindling, facing a lot of regulations on the horizon, but there might be light at the end of the tunnel. So, the question is, is the next bull run awakening from hibernation?
Well, we will be examining the crypto flashing green light indications, checking out the current circumstances facing the currency and events that are shifting the crypto market back into gear. Let’s get started.
Cryptocurrency’s Historical Trend
Whenever you are in doubt, the first thing you have to do is check out the trend of events to gain clarity.
Historically, for cryptocurrency assets, September last year was the worst period.
8/10 times since 2013, Bitcoin has ended in the red. Its yields were negligible in the other two cases as well [2% and 6%].
However, many do hope that 2023 will be different, but there are still some holes to be filled.
Almost all the popular digital currencies saw their prices collapse, with Bitcoin falling 65%, Ethereum falling 68%, and numerous altcoins experiencing even greater reductions.
In addition, the many scams that shook the digital currency industry in 2022 have caused a significant loss of faith in the dApps, DeFi protocols and digital currency sectors.
However, the fact that the crypto market grew too large in 2021, was one of the causes of the market crash. That is why, the overall market value of all cryptocurrencies reached a high of roughly $3 trillion in the month of November 2021.
For example, Dogecoin and Shiba Inu, which started as a not-so-serious investment, ended up attaining high value. Shiba was worth $41 billion, while Dogecoin’s value was $73 billion at the time.
However, Crypto enthusiasts are armed with proper knowledge surrounding their favorite currencies, including resources on how to spend bitcoins or manage their digital assets online. By following proper guidance and using an online knowledge bank, one can mitigate the risk and enjoy more profit.
Why is the Crypto Market Recovering Today?
Due to global economic circumstances and inflation data, the market for cryptocurrency is currently seeing a modest decline after an excellent start to the fiscal year 2023.
Due to the effect on the amount of trade, the worldwide digital currency market capitalization currently stands at $1.03 trillion as of September 13, 2023, which is somewhat under pressure.
Ethereum, on the other hand, has additionally shown evidence of recuperation, has made a small correction, and was close to the $1,850 mark.
After reaching $2,100 in the middle of April 2023, Ethereum reached its greatest point since August 2022. This rise was observed right after the “Shapella” ETH hard fork’s effective take-off, which has the potential to completely alter the environment for the Ethereum cryptocurrency and its associated apps.
ETH is at the moment trading nearly 0.99% lower and establishing a significant barrier at values around $1,850.
The financial markets experienced substantial support earlier this month as a result of several positive reasons, including strategies for combating price increases and the dollar’s strengthening index’s decline, which improved moods generally.
Nevertheless, when we look at the world of digital currencies as a whole, including BTC and ETH, there aren’t many signals that things are improving.
According to cryptocurrency analysts, BTC has just experienced a significant comeback. The BTC price drop demonstrates the general status of the cryptocurrency market.
Presently, any action, including a breach of the bearish pattern and an obvious trend turnaround, could assist in significantly correcting the value of Bitcoin.
Crypto Market Trajectory
According to Coingecko, here is the crypto market trajectory from 2021 to the present. So, check this out to be informed before buying Bitcoin.
|Year||Market Cap Trajectory|
|November 10, 2021||~$3 Trillion|
|November 21, 2022||$830 Billion|
|February 3, 2023||$1.09 Trillion|
|March 31, 2023||$1.17 Trillion|
|April 27, 2023||$1.20 Trillion|
|May 26, 2023||$1.11 Trillion|
|June 6, 2023||$1.09 Trillion|
|July 28, 2023||$1.18 Trillion|
|August 31, 2023||$1.08 Trillion|
|September 13, 2023||$1.03 Trillion|
What Lies Ahead for the Crypto Market?
The widespread worries regarding the SEC’s accusations and penalties against Binance, a cryptocurrency trading platform, as well as the situation with inflation worldwide, have put a great deal of stress on the cryptocurrency market.
The downward trend of BTC, along with others like Dogecoin, BNB, Solana, and several others, has been countered, though, by decreasing inflation statistics and a number of other global causes.
The current value of the world’s cryptocurrency market is $1.08 trillion.
The financial sector relief that caused the price of Bitcoin to rise last time had a smaller favourable impact on the cryptocurrency market.
The primary causes were the Federal Reserve’s approach to raising interest rates, the public’s growing confidence in decentralized finance in the wake of the U.S. financial services crisis, and the need to prevent an economic collapse.
The cryptocurrency industry received significant support from these factors, which raised expectations for the remainder of the year.
Additionally, there are considerable expectations for the monetary policy outcomes, which may include Bitcoin along with other virtual currencies, and there is a chance that authorities that previously seemed adamantly opposed to virtual currencies might alter their opinions.
In addition, there is a main cause for the current crypto mini-bull run. Significant losses on numerous bong holdings as an outcome of bank contagion have compelled the Federal Reserve to hold off on rate increases in order to address serious liquidity concerns.
At the time of writing, the average interest rate in the United States is 5.5%.
Risky investments like cryptocurrencies have historically been negatively affected by higher inflation rates since consumer demand for such investments declines whenever rates go up.
How to Properly Invest in Crypto
While we are all anticipating a favorable increase in the crypto market, it is important for you to know how to properly invest in crypto so as not to fall victim to uncertainties that might come with these crypto expectations.
Here are some tips on how to invest in crypto:
1. Do your Research
As everyone is waiting for the crypto market to recover, investing now is not a good idea.
However, there is a need to do your research on the crypto market to be sure of when to invest and when not to. This is because you might end up losing your assets in your bid to get in early.
So, my advice is that you should test the waters, but not with your two feet.
2. Be Willing to Invest What You Can Part With
A lot of people come into investing with all their life savings. Be wise.
As an investor or crypto enthusiast, you should invest a little to test the new market. This is because, according to history, just because the crypto market is on the rise does not make it stable enough to drop everything you have in your wallet.
Also, you can only control what you have not invested yet. Once invested, the outcome is likely to be out of your control.
3. Choose the Right Cryptocurrency
With many cryptocurrencies gaining momentum with the shift in market demand, not all of them are good investments.
This is why you need to do your research. Follow verified Twitter accounts, keep up to date with statistics, and watch carefully for fake cryptocurrencies.
As we have tried to explore the challenges facing the crypto market and the likelihood it might gain momentum in months to come, while the smaller factors may assist the crypto market to achieve this rise, there are still risks of regulation and security that cannot be shrugged off.
So, if you are thinking of a specific time frame for when this winter will be over, you might not get a definitive answer. However, keep in mind that blockchain is working towards improving its transparency and rebuilding trust in the minds of the users.
In that case, strong security practices and good oversight might help this long-awaited crypto comeback.
Well, on the bright side, when winter fades, spring comes. Let us wait and see what happens in the months to come. Trust us to give you the gist via this platform.