Will crypto ever recover from the crash?

Basically, every cryptocurrency has been down in value for a while now – cryptocurrency, they call it. It all started a few months ago, for a number of reasons. Part of that is the same set of factors that have affected stocks and economies in general: the war in Ukraine, concerns about inflation and higher interest rates. These global problems also affect cryptocurrencies – they are, after all, part of the economy – but then things got worse.

In May, Terra, whose original coin is LUNA, completely imploded, from a value of £ 62.78 per coin on the 7th.^th May to £ 0.000014 less than a week later. Jaja. This made some people very, very worried about crypto-billions being lost to some investors, many of whom in the past would have been very safe on the blockchain. Then, in June 2022, Celsius Network, one of the major cryptocurrency lending companies, began to freeze withdrawals and stuff. This again led to skepticism and many people hurried to withdraw their money from crypto, which in turn brought the market down. again.

However, there are small signs that it is picking up again. Right now, for example, Bitcoin is down, but the value of other currencies, such as Ethereum, is creeping up again. Crypto is known for boom cycles: trends are rising, new businesses are getting people excited again and investors are coming on board because this cryptocurrency seems to be able to help people retire at 21.

And while this may give little hope in the midst of much gloom, it seems that the general appetite for crypto is still there. New cryptocurrencies are launched daily, people who served before the crash start companies and even football teams are still involved (Man City recently launched a partnership with OKX, which will be on the shirts next season). There are also advances in technology such as NFTs and NFT marketplaces, and the sensational thing called metaverse.

But will we ever see cryptocurrencies match their all-time highs again? Well, if we could predict the tides of crypto, we would not be writing this, and you probably would not read it. We all wanted to live it up, drink oxygen in Bali or whatever rich people do with their money. So obviously, take predictions with a pinch of salt and do not let them influence you to buy or sell (or not buy or not sell) anything crypto-like. That said, let’s dig a little deeper.

CNBC recently reported that one ?“top crypto-exchange founder ”has predicted that Bitcoin will not have a new bull run (AKA be a resource that gives you returns, read more about it here) before 2024. Think it means it will recover in 2024, and you can just hang back and buy the dip until then? I hear you. But that, maybe, maybe not.

At the time of writing, one Bitcoin is worth £ 17,653.30, according to Coindesk. But the market may continue to crash and a Bitcoin may be worth a ten in 2023. This means that 2024’s big bull run may only amount to £ 1000. If you have Bitcoin now, you will hope this does not happen. But it could. On the other hand, we can see Bitcoin stay around its current price until 2023, and then have a bull run that gets the value back to (and maybe even beyond) its all-time high of £ 58,291.10. No really vet. In addition, experts’ predictions are often (read: almost always) wrong.

Bitcoin is the largest player in crypto right now, but that’s not all. Other coins like Ethereum offer a wider range of purposes and are looking for ways to have a smaller carbon footprint, which may mean it’s their time to shine. Ethereum 2.0 is set to launch this year, for example, and many experts say this will lead to an Ethereum bull run. Of course, there are constantly new government regulations that can stop this hype, and crypto in general. But to say that a bunch of these altcoins will go on a bull run before 2024, that would mean that crypto can generally recover, while Bitcoin (or any other currency) can be left behind.

All this shows that bear runs and bull runs are relative and there are many variables. Also, ?“crypto-recovery “can mean different things to different people. For some, recovery can seem like a place between where we are now and the heights of the times; for others, it can mean making money on every day, and constantly breaking those records. is not impossible, but there will always be falls, and as we learn now, they will sometimes be extended.

So if you are riding the crypto wave, make sure you are firmly seated. Running with oxen and bears will never be an easy ride. Although there still seems to be increasing demand and exposure, there are still many risks involved. Never invest what you can not afford to lose.