With the starting of this year itself, let alone the crypto market rather the markets across the world have suffered. Multiple reasons remain behind the situation to make up, from beleaguered macroeconomic situations, war between Russia and Ukraine, Federal Reserves interest rate hikes, looming threat of inflation and recession, all at once.
In crypto space, instances like Terra (LUNA) only made the crypto winter colder. Since the global crypto market reached its market capitalization last year, the crypto market has consistently dropped.
The markets are quite sensitive to the news all around and directly impact the crypto assets and stock price.
Downturns in the market or the crypto winters are not the new phenomenon at all. There were many instances where the market witnessed steep drops and then took back its place. Initially, leading cryptocurrency bitcoin (BTC) was there in the market which started the journey for crypto market.
In the year 2013, the overall market capitalization of the broader crypto market reached up to 16 billion USD. The rally did not continue for long through and the very next year the price started to decline. By 2015, the market cap dropped to 3.2 billion USD from which, it took back its previous high of 16 billion USD in 2016.
Crypto market started budding with pace and by the year 2018, it achieved market capitalization of 821 billion USD in January. However, by the end of the same year, the market cap lost about 87% of overall value from its high at the start of the year.
The same sideways movement continued for a couple of years and then the crypto market boom in 2021 where it reached its then all time high in January. Most cryptocurrencies witnessed growth during the whole year and by November 2021, the crypto market achieved its all time high market capitalization of 3 trillion USD.
This too did not last long as at the start of the very next year, 2022, the market took a downturn and it continued till the date. As of now, the market capitalization dropped over 70% from it’s all time high.
Analysts find silver linings here given the bounceback timing of the market. Historically, the market rebounded to its earlier level in an average of two to three years. The last ATH already completed its one year and so the ongoing prices could be a chance for investors to fill their bags.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/11/23/what-could-be-good-in-the-ongoing-crypto-winter/