The cryptocurrency market is still experiencing a macro-bear run. Approximately $3 trillion was the total value of all assets in the cryptocurrency market at the top of the 2021 bull market. That figure is currently down to $1 trillion, though. The market first corrected for seven months, from mid-November 2021 to early June 2022, as shown below. It entered its consolidation phase immediately after and has remained there ever since.
Is a Recover Coming for the Crypto Market?
In the last half-year, Bitcoin's value has decreased by 4.8%. But so far this year, it has increased by 58%. Similarly, ADA was at break-even while ETH had increased by 32%. Therefore, despite the fact that things appear dire in the short run, it's important to remember that individual crypto assets are making headway.
In terms of the big picture, Bitcoin appears to be already on the road to recovery. 2019 saw the start of a brief rebound for Bitcoin, which was followed by a bearish breakdown and a few months of consolidation before a surge of over 1600%. Bitcoin has been increasing in value since the start of 2023. It recently broke below its bullish support, setting the stage for a protracted consolidation, much like in 2019–2020. In 2024, it is anticipated that Bitcoin will begin to rise and achieve a multi-digit increase after liquidity has been gathered for several months. Ethereum and other altcoins should essentially follow suit.
The Bear Market Will Be Over at the Beginning of 2024
The cryptocurrency markets are expected to rebound in 2024, according to analysts and investors, following a protracted bear market in 2020. The industry's ability to weather storms and show signs of recovery even in trying times has contributed to this optimistic outlook. As a result, traders and investors should anticipate better performance in the upcoming year, which may result in higher returns and more liquidity. Furthermore, in 2024, more companies are probably going to enter the cryptocurrency space, which will accelerate the uptake of blockchain technology and virtual currencies.
A Bull Market Will Occur After the Crypto Market Bottoms
A bull market is anticipated to ensue from the cryptocurrency market's bottom as traders and investors seize an opportunity that may carry less risk. This might lead to a spike in earnings and liquidity, which would support the sector even more. The promise of greater liquidity may also entice new players to the market, which could result in more companies joining the cryptocurrency ecosystem. Not to be overlooked is the possibility that increased market performance will increase consumer trust in digital currencies and blockchain technology, which will encourage more people to use virtual currency on a daily basis.
Will 2024 See the Return of Bitcoin?
Although it is impossible to forecast the cryptocurrency market's trajectory with complete accuracy, it is reasonable to assume that Bitcoin will resurface in 2024. During this time, blockchain technology is probably going to be further improved, leading to faster transactions and greater scalability. As a result, investor confidence would probably rise again, giving the market the boost it needs to surge higher. Additionally, the rise of new technologies like Decentralized Finance (Defi) may spur the price of Bitcoin to rise again, attracting traders and investors to the asset even more.
The Next Crypto Bull Market Will Be Led by Bitcoin
Since its inception in 2009, Bitcoin has experienced extreme ups and downs. Many industry observers have questioned whether the recent explosive growth in cryptocurrency could usher in the next crypto bull market. A lot of investors are optimistic about Bitcoin's future because of its robust network effect. Because of its limited supply, it can help prevent inflation and lessen volatility.
Over the past few years, the rapidly expanding cryptocurrency market has experienced exponential growth, and the industry is only expected to continue expanding. Given that Bitcoin is still the most widely used cryptocurrency, many analysts and investors believe it will be the main driver of the upcoming cryptocurrency bull market. Many investors find decentralized currencies like Bitcoin appealing because they provide increased security and independence from governmental restrictions. It is probable that the popularity of cryptocurrencies will increase further as more investors become aware of their potential.
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