Will crypto rise again, you ask? The crypto market has experienced its fair share of ups and downs over the past decade. After the unprecedented bull run in 2021 and the bear market throughout 2022, many people are wondering: Will crypto rise again?
This article aims to analyze the prospects of crypto in 2023, considering various factors that could influence the market’s movements. Read on as RR² Capital discusses.
The Historical Performance Of Crypto
Cryptocurrencies have experienced incredible growth since the inception of Bitcoin in 2009. Just like any market, the crypto market has a history of bullish and bearish periods. Understanding the historical performance of crypto may provide some insights into how 2023 and beyond could play out.
The 2012 Crypto Bear Market
The 2012 crypto bear market is remembered by seasoned crypto investors as the period when Bitcoin experienced its initial significant downturn. This bearish phase, which lasted approximately six months, was influenced by a series of hacks and adverse incidents.
The 2013 Crypto Bull Market
In contrast to the previous year’s bear market, 2013 proved to be a remarkable year for crypto. Bitcoin experienced its first major bull run, attracting widespread attention and investor enthusiasm. The price of Bitcoin soared to unprecedented heights, reaching a peak of over $1,000.
The 2014 Crypto Bear Market
Towards the end of 2013, the FBI closed down Silk Road, a notorious online platform involved in illicit activities such as money laundering and illegal drug transactions facilitated by Bitcoin. This bear market persisted for about thirteen months.
The 2017 Crypto Bull Market
2017 was an explosive year in the crypto world. Bitcoin, along with many other cryptocurrencies, experienced an unprecedented surge. Bitcoin’s price skyrocketed from around $1,000 at the beginning of the year to nearly $20,000 by the end of December. This remarkable bull market drew attention from mainstream media leading to a widespread interest in cryptocurrencies.
The 2018 Crypto Bear Market
The 2018 crypto bear market gained extensive media attention and was widely known as the “bursting of the Bitcoin bubble.” Following its peak at nearly $20,000, the price of Bitcoin plummeted by more than 80%. This bear market endured for approximately two and a half years, marking the lengthiest downturn in the crypto sphere thus far.
The 2020-2021 Crypto Bull market
The most recent crypto bull market occurred in 2020 and extended into early 2021. This period was characterized by a significant increase in the prices of almost all crypto assets. The surge was fueled by several factors, such as the COVID-19 Pandemic, political and economic instability and increased institutional adoption. Bitcoin reached new All-Time Highs (ATHs) of around $69,000.
The 2022 Crypto Bear Market
The 2022 crypto winter caught the industry by surprise, leaving many in disbelief. The sudden downturn and decline in cryptocurrency prices were met with skepticism, however, as the bear market persisted, it became evident that a bear market was present.
The Current State Of The Cryptocurrency Market
Is the bear market over? That’s the question on the mind of Bitcoin advocates around the world. In November 2022, Bitcoin hit a low of about $15,600. Since then, the price of Bitcoin has been rising steadily. As it stands, Bitcoin, the world’s largest cryptocurrency, is currently trading at $26,970 with a market cap of $522,892,102,859. Currently, it’s not clear whether the bear market is over or not. Ultimately, only time will reveal whether the bear market has ended.
Will Crypto Rise Again In 2023?
While it’s impossible to provide a definitive answer, here are some insights based on historical trends and the current state of the cryptocurrency market.
Cryptocurrencies have a history of volatility and large price fluctuations. In the past, cryptocurrencies have experienced significant price increases followed by periods of correction and consolidation.
Looking at the current market conditions, the crypto market is currently experiencing a period of correction. The question of “when will this correction end?” is almost impossible to answer. Based on historical trends, it is possible to predict that the crypto market will rise again. It is, however, difficult to accurately predict when this will take place.
Ultimately, the future of cryptocurrencies in 2023 and beyond will depend on a multitude of factors. Only time will tell what the rest of 2023 holds from crypto.
What Causes Crypto To Rise?
Over the past decade, the crypto market has witnessed wild price fluctuations and gains. But what drives these remarkable price movements? Unlike traditional asset classes, like the stock market, cryptocurrencies are highly volatile. Prices can be influenced by various factors, including unpredictable events. Some factors that can cause cryptocurrencies to rise include:
Market Demand
The demand for cryptocurrencies can cause the prices to rise. An increase in interest and adoption from individuals and institutional investors can cause crypto prices to rise. The more people that want to buy and hold a digital asset can drive its price up.
Investor Sentiment
Investor sentiment is the overall attitude of investors towards a particular market. Investor sentiment plays a massive role in the valuation of cryptocurrencies.
When it comes to cryptocurrencies, investor sentiment can often have a profound effect on price movement. This is because the crypto market is still relatively new, and easily influenced by speculative behavior.
Positive investor confidence in the cryptocurrency market often leads to increased buying pressure, which drives prices higher.
Supply and Demand
Most cryptocurrencies had a limited supply. The scarcity of crypto can also cause prices of certain coins to rise when the demand outweighs the supply. This is evident in the case of Bitcoin, where the maximum supply is 21 million coins. According to CoinMarketCap, Bitcoin’s circulating supply is currently 19,392,843 BTC.
Technological Developments
Technological Developments, such as improvements in a blockchain’s scalability, security, or functionality, including the adoption of crypto payments, can cause the price of digital assets to rise. These positive developments can often attract more users which positively affect prices.
Economic Uncertainty
Cryptocurrencies are seen as an alternative investment class. During times of economic uncertainty, inflation or other economic concerns, people may seek refuge by investing in crypto. Things like interest rate hikes and monetary policy changes can also influence crypto prices.
Cryptocurrencies are decentralized and independent of government control. During economic instability, cryptocurrency tends to thrive because of its unique ability to act as a hedge against the potential devaluation of fiat currency.
Regulatory Changes
Governments around the world are starting to warm up to the idea of cryptocurrency. Favorable regulatory developments can often cause the price of crypto to rise. Things like, positive regulation, clear frameworks, create a positive environment for crypto adoption. For example, some clear regulation from the U.S. Securities and Exchange Commission (SEC) could cause the price of cryptocurrencies to rise.
The Media
The media can also have a positive influence on Bitcoin prices. Positive coverage and endorsements by influential figures can attract more investors. Furthermore, breaking news on positive developments has a profound effect on crypto prices. Positive news often generates excitement and can trigger a surge in demand, leading to price rises.
Social Media
Social media platforms have become instrumental in building communities. Discussions related to crypto can quickly go viral, influencing the sentiment of many people. Crypto communities on platforms like Twitter can create hype around specific projects. This hype can often lead to increased interest, driving up the price of crypto assets.
Expert Bitcoin Price Predictions 2023
The crypto market is highly unpredictable. Will Bitcoin rise again in 2023? While it’s difficult to predict the exact BTC price in 2023, many experts remain optimistic. Here are some BTC price predictions for 2023:
Tim Draper Bitcoin Price Prediction 2023
Billionaire Venture Capitalist, Tim Draper, expects Bitcoin will reach $250,000 in 2023. Draper extended his prediction timeline until 2023 after the collapse of FTX, however, he’s convinced the coin will hit its quarter-of-a-million milestone. Draper believes that the market has yet to get the retail sector, where women control 80% of spending.
Marshall Beard Bitcoin Price Prediction 2023
Marshall Beard, Chief Strategy Officer at cryptocurrency exchange Gemini, believes $100,000 could be a possibility for Bitcoin in 2023.
“I think Bitcoin probably breaks All-Time Highs this year,” Beard said, adding that the $100,000 price figure is an “interesting number.” Beard went on to mention that if Bitcoin breaks its All-Time High (ATH) of around $69,000, it won’t take much to lift the price up to $100,000.
Bitcoin Price Prediction 2030
Cathie Wood BTC Price Prediction: $1,000,000 By 2030
Cathie Wood, CEO of Ark Invest, believes the BTC price could reach $1 million by 2030 as the cryptocurrency’s global usage is still only in its early days.
Top Tips For Investing In Crypto
Diving into the world of crypto can be daunting, especially for new investors. You need to be prepared for what lies ahead on your crypto trading journey. Here’s some of the top crypto investment tips:
Do Your Own Research (DYOR)
It’s important to Do Your Own Research (DYOR) before investing in cryptocurrencies. The value and performance of cryptocurrencies is influenced by various factors. The crypto market has experienced significant volatility in the past, with periods of both rapid growth and sharp declines.
While many crypto experts predict great things, it’s important to remain optimistic. You never know when prices will rise or fall. The market can be unpredictable, and investments in cryptocurrencies come with risks.
If you are investing in crypto, you should conduct thorough research and stay informed about market trends. Avoid taking investment advice from strangers on social media. When it comes to cryptocurrencies, do your own research and make your own investment decisions.
Diversify Your Portfolio
Diversification is key for any investment, regardless of the asset class. The process of diversifying your crypto portfolio involves spreading your investment across various cryptocurrencies. This strategy helps to minimize risk and protect your overall investment capital. By investing in various digital assets, you can create a risk balanced portfolio.
Diversifying your investments across different cryptocurrencies helps to spread the risk. This way, if one investment underperforms, others may balance it out. By diversifying your investment, you increase your overall chances of investment growth.
Avoiding FOMO
Fear Of Missing Out (FOMO) can easily push any investor over the edge. It’s crucial for investors to avoid FOMO and stick to rational decisions based on careful analysis. Just because everyone else is investing in a particular asset, it doesn’t mean you should too. Rely on your research and analysis to guide your decisions.
Avoid Panic Selling
During a bear market, it’s common for investors to panic and sell their holdings to try minimize losses. The best thing you can do in a bear market is to remain calm and study the market. Panic selling during a bear market can lead to further losses. You don’t want to sever your chances of any potential recovery simply because you panic sold. Making decisions based on fear can hinder your long-term investment goals.
Control Your Emotions
Controlling your emotions is crucial when investing in cryptocurrencies. The volatile nature of the market can trigger emotional responses. Things like fear or greed can lead to impulsive and irrational decision-making. This is especially true for crypto traders. Emotional or impulsive decisions can lead to bad investment choices. Don’t let fear or greed dictate your actions.
Having an investment plan based on your individual investment goals and risk tolerance is crucial. An investment plan can help you stay focused and disciplined, reducing emotional decisions.
About RR² Capital
For more information about RR² Capital and our expansive disruptive technology-focussed investment portfolio, visit our website here or send us a mail here.
