Crypto is going through, what seems like, an everlasting ‘crypto winter’, and most investors have lost hope of its revival especially the bigger coins including Bitcoin and Ethereum. The total value of all crypto assets has fallen roughly 64% from $2.2 trillion to about $797 billion in 2022. The biggest cryptocurrency, Bitcoin has fallen 64% and Ether has fallen 67% in the same time frame.
Another big collapse of the year included Terra/LUNA which collapsed in early May, within about six weeks, over a billion dollars of the total crypto market cap was wiped out, dropping from about $1.8 trillion to about $820 billion.
Despite all these depressing numbers, the crypto industry has shown tremendous growth in the past few years. Some industrialists are still optimistic about the
This positive outlook has been bolstered by the fact that the industry has managed to weather the storm and show signs of recovery even in difficult times. As such, investors and traders can look forward to improved performance in the coming year, which could lead to higher returns and increased liquidity. Moreover, more businesses will likely join the crypto ecosystem in 2023, driving the adoption of virtual currencies and blockchain technology even further.
A bottom in the crypto market is expected to be followed by a bull market as investors and traders take advantage of a potentially lower-risk opportunity. This could result in a surge in profits and liquidity, further strengthening the industry.
Additionally, new entrants may be drawn to the space with the assurance of increased liquidity, potentially leading to more businesses joining the crypto ecosystem. Equally important is the fact that consumer confidence in digital currencies and blockchain technology could grow due to the improved performance of the markets, leading to more people using virtual coins on a day-to-day basis.
It is impossible to predict the future of the crypto market with absolute certainty, but it is reasonable to assume that Bitcoin will come back in 2023. Blockchain technology will likely be further enhanced during this time, improving scalability and transaction speeds. This would likely lead to a resurgence in investor confidence and enable the market to regain momentum and reach new highs. Furthermore, the emergence of new technologies, such as Decentralized Finance (Defi), could catalyze Bitcoin’s recovery, making the asset even more attractive to investors and traders.
The largest crypto by market capitalization, Bitcoin might continue to be among the top cryptocurrencies to invest in in the coming year. Its large-scale adoption makes it a reliable asset class.
With big techs, like Google’s parent company Alphabet, and renowned banks adopting Bitcoin, the odds of its value stabilizing are greater than those of other cryptos. Ethereum on the other hand is home to a range of decentralized applications (dApps) and organizations. Crypto has many use cases which might help it retain and raise its value.
Analysts and market researchers have studied the performance of the cryptocurrency market since its inception and have concluded that the market is showing steady growth. This continued growth has led many to anticipate that 2023 will be a good year for the crypto industry as confidence in the technology increases and more businesses decide to adopt it. As more companies adopt blockchain technology, the need for skilled professionals to work in the sector will increase. This will create more job opportunities, which could foster further industry growth.
But for crypto believers, these fallen events are part of a natural cycle of renewal. Bull markets lure gamblers and scammers. Crypto winters thin the herd. Crypto optimists will regale you with stories about how they prospered in the earlier crypto boom of 2017 and weathered the cold snap that lasted until the thaw of 2020. In the cult of crypto, the profits of the next boomtime are sown during the fallow period.