Cryptocurrencies and Bitcoin suffered great losses due to the stock market crashes in 2022, as we have reported as Kriptokoin.com. Against the backdrop of scandals and bankruptcies, severe inflation, and painful anti-inflation policies, cryptocurrencies have faced huge declines. However, some cryptocurrencies have fallen to the bottom. So, is this the beginning of the end? What’s next for the cryptocurrency markets? Experts explained…
What’s next for Bitcoin, DOGE and Altcoins? Will the market continue to decline?
As you know, the leading cryptocurrency Bitcoin was launched in 2013 and at that time the only name on the market was Bitcoin. The leading crypto held its first halving in 2012 and was valued at less than $13 per coin. This amounts to a predetermined 50 percent cut in rewards earned for mining a new block of Bitcoin, which is scheduled to occur roughly every four years. This event, which got ahead of inflation, inspired more people to try their luck at Bitcoin mining, and the leading crypto soon rose.
However, Bitcoin (BTC) prices rose to $130 in August 2012 and peaked at $1,151 in December. That’s when a leading cryptocurrency exchange was hacked and the crypto boom was thwarted for the first time. Bitcoin slumped to around $180 per coin amid loud statements that the entire cryptocurrency concept is a mirage with no real value. However, there were many companies that made fun of them by stating that all these events were imaginary.
About a year after the next halving, there was another rise, peak and fall in 2017. This time, Bitcoin’s movements led to price action in thousands of new cryptocurrencies, including all the names listed in the table above. Trading volumes were also much higher, and price movements found more coverage in traditional news outlets. Bitcoin prices this time reached almost $20,000 per coin. Yet another crypto winter followed, with many investors saying goodbye to crypto forever.
During the COVID-19 lockdowns in May 2020, the next halving didn’t seem like much at first as Bitcoin prices remained stable at around $10,000 for several months. Yet another bull run took place in 2021, with Bitcoin prices breaking above $60,000 several times. Some who gave up on crypto in 2018 took this market seriously again. Non-exchangeable tokens were very popular for a while. Some chain stores have started to accept payments in Bitcoin, Ethereum and even Dogecoin (DOGE). Soon after, with the effect of inflation, investors started to withdraw from risky investments and cryptocurrencies such as BTC, ETH, DOGE started to decline again.
What awaits the cryptocurrency market?
So what’s next for Bitcoin and the cryptocurrency market? Some experts exaggerate the claims that the industry is over, while others expect a full recovery. As you know, there are many factors affecting prices in the crypto money world and the market had a very good start to 2023. However, it looks like the government has finally tamed the inflation monster. According to experts, the economy may experience a recession this year, but on the other hand, it will come out stronger. On the other hand, investors are again interested in riskier growth-oriented ideas, including cryptocurrencies. The four digital currencies listed above have risen 43 percent to date, led by Bitcoin’s 73 percent rise.
According to the data instantly announced by experts, there are 4 additional growth catalysts:
- It’s about a year away from the next Bitcoin (BTC) halving. The exact date will depend on how quickly people and companies earn their Bitcoin mining rewards, but the last block in the current reward rate should fall towards the end of April 2024. Usually you’ve seen what happens after a few months. History doesn’t repeat itself, but it tends to rhyme. It seems almost certain that even this cyclical pattern alone will trigger a new bull run next year.
- Regulators and crypto projects are setting a future framework for crypto regulation. The Securities and Exchange Commission (SEC) lawsuit against XRP’s governing body, Ripple Labs, awaits a decision after more than three years of allegations, filings and high-profile media debate. It should bring much-needed clarity on how the SEC and other government agencies should treat the crypto market as a whole, according to experts. Even a brutal decision in favor of the SEC would be better than the rudderless boat that crypto investors have been stuck with so far.
- The inflationary crisis has given many people the idea that traditional financial systems may not be perfect after all. Cryptocurrencies, for example, can have the power to correct many of the wrongs of the old-school banking market. Only a few usable and widely adopted decentralized finance (DeFi) applications will catch fire under the blockchain network powering the new application. For a modest-sized crypto like Cardano, even a smaller hit can work, while Ethereum’s needle is harder to move.
- Bitcoin’s predictable halving events may set the rhythm of the crypto market, but in the long run, solid regulations and mass-market adoption of DeFi applications are of far greater concern to experts. This is where the true value of the crypto market comes from. According to experts, cryptocurrencies are meaningless without developers and app users.
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