There is no doubt that cryptos are the future of money. Over the years, they have gained acceptance all over the world, with many online stores, gaming stores and merchants allowing their customers to transact with different coins. Most coins have recently experienced volatility, with many market watchers having differing opinions on the matter.
Market Growth in 2022
Early in 2022, the market was booming for investors, with leading coins such as Bitcoin seeing a 61% increase in value and Ethereum seeing a 400% increase from 2021. The last time any of these coins experienced a major rise was in late 2017, but the market has been on a steady fall since then.
However, a year before the next rise, the market began to experience some corrections. Unfortunately, the crypto market has been performing poorly for much of 2022. This was exacerbated by the bearish trends seen throughout the rest of the year.
Besides, the stock market then dipped so low due to several factors, including the war in Ukraine, surging inflation and COVID-19-influenced macroeconomic issues. Unfortunately, the crypto market followed suit and started falling faster than expected.
Towards the end of the year, crypto rallied and seemed to improve. Bitcoin prices climbed by about 23%, moving from a low of $17,708 in June to over $24,000 by September of the same year. During the same period, Ethereum increased by about 58%. Bitcoin continued its free fall in the fourth quarter, but not as precipitously as it had been.
One of the things that are causing the leading coin to go down is a recent revelation that Tesla has sold over three-quarters of the $1.5 billion worth of Bitcoin it invested earlier. This was a significant support for the coin, but it had eroded along with investor hopes.
Capitalization and Activity around Cryptos
The market capitalization for Bitcoin has gone above $1 trillion. However, this was a really sharp decline given that it was valued at $3 trillion sometime in November 2021. On the other hand, the market capitalization for Ethereum stands at about 189.9 billion dollars. However, this is a fall from about 189.69 billion late in 2021. Towards the end of 2022, the coin had slightly appreciated, but at a fraction of its earlier value.
In the meantime, transactions in Cryptocurrencies increased across several quarters. Many businesses and casinos have begun to accept cryptocurrency payments. New, crypto-only casinos also cropped up and the existing ones increased their offerings. One of such casinos is Stake. Learn about crypto gambling Stake to know the games that you can play on the platform.
Has the Crypto Market Hit Bottom?
Many of the market analysts believe that the market is not going to get any worse. The last major drop was around June 2022. Despite having other slower drops after that, it has generally rebounded. However, some analysts explain that the market has already hit bottom.
One of the reasons they have come to this conclusion is the recent deleveraging of companies like Celsius, Voyager and other leading crypto firms. This market shows that the most intense part of the market is already behind us, and things can only get better in the future.
Another factor leading analysts to believe that crypto is on the rise is the decision by leading governments around the world to combat rising inflation. In the US, the Federal Reserve has taken several steps to reign in price increases, bringing some optimism to the general money market. Besides, the Bank of England has also taken measures to shield the general UK public from the increase in commodity prices. Given that the crypto market is following whatever is happening in the fiat market, if the inflationary pressures are brought down, the market will also go up.
The U.S. Securities and Exchange Commission (SEC) has taken steps against several leading coin exchanges and crypto firms, the leading one being Coinbase. Cryptocurrencies that run into problems with regulatory bodies are likely to crash in the near future. However, the general market will enjoy the benefits of increased legislation in the area.
What Can We Expect from Coins in 2023 and Beyond?
It is not possible to determine with great accuracy what will happen to cryptocurrency as 2023 moves ahead. However, events in 2022 and earlier will have an impact on events later in the year. However, the adoption of more coins as a means of exchange and regulation is going to play a huge role in determining the movement of the coins.
In the same breath, investors should look out for cryptocurrency regulations in leading economies such as the United States, the UK and Canada. Besides, they should watch out for the adoption of crypto coins by leading online sellers and the mass market. Furthermore, the trading of funds on exchanges will have an impact on the overall growth of the industry. Some countries may decide to adopt cryptocurrency as a legal tender, just like El Salvador.
The Future of Money
In the middle and long term, it is expected that there will be a framework to regulate cryptocurrency. However, countries have not reached a consensus on
which laws will be put in place, given that some economies have already outlawed the use of e-currencies.
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In the meantime, more people will be accepting cryptocurrency as part of their daily transactions. Already, most people who shop online are either using or contemplating using cryptos for their transactions. Online marketplaces and casinos will lead the marketplace with new adoptions.
Overall, cryptocurrency is here to stay. While it will experience volatility and dips, it will continue growing and getting greater acceptance. For investors, the long term will be great, as it will appreciate significantly. However, speculators may find it hard to get significant profits.
