2022 saw the crypto market plunge, with almost $2 trillion erased across the market. This has left crypto owners reconsidering their position on their investments.
Following its drop to $18,000 in June, Bitcoin has regained some of its value. It is trading at $21,487 at the time of writing, which is still way under the all-time high. Bitcoin remains one of the most popular ways of wagering – and Bitcoin poker at IgnitionCasino.eu can help you earn massive winnings in a shark-free zone even in the current market.
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What Do the People Think About the Market?
According to a study conducted by Morning Consult, crypto owners are optimistic about a bull market returning by the end of 2022. Their hopes for a rebound to around $38,000 is much higher than that of people who don’t invest in the market.
Several factors such as inflation, e-commerce and the restrictions on financial mobility have all contributed to the current situation of the crypto market. Higher interest rates and restricted cash flow due to impeded borrowing have also contributed to the
The state of the economy will naturally progress in the next few months. And this will also lead to a potential redevelopment of the crypto currency niche.
But of course, there have been several experts hinting at a prolonged recession for the crypto market in the days ahead. This could offset the massive ten year boom of the market, instead of a bullish run.
What’s Next After the Crypto Winter?
The crypto winter could wipe out smaller tokens that enjoyed soaring gains in 2021. Claims that the crypto market could function independent of the traditional economy have also been challenged – if not proved wrong.
TerraUSD (UST), a stablecoin that was matched to the dollar failed alongside it’s sister token Luna. This was one of the key developments that led to the onset of the crypto crash. Companies were not prepared for UST to crash, and struggled to deal with the crisis with investors losing almost all their holdings overnight.
This naturally led to many new crypto projects failing, or being completely wiped out. On the other hand, big currencies like Ethereum and Bitcoin are most likely to survive the crypto winter. The latter has extensive use cases in everyday life, which offers more practicable value. However, Bitcoin has maintained its value with greater stability over the years.
Conclusion
Sites like Coinpedia and Coincodex have been projecting a bullish run for the market in the coming years. But, their forecasts for the near future remains for investors to offload their holdings. This clearly suggests that there will be more decline in the value of tokens in the coming weeks.
Conversations about cryptocurrency regulation are expected to factor into the discussion. Laws to protect investors from market crashes and cybercriminals will also change the way the market operates to a considerable degree. But for now, the market remains reflective of the traditional economic picture.
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