Is Cryptocurrency Dead? Well, the whole crypto market has revolved around the news of cryptocurrency died, and it is speculating about the financial market. Crypto users are fully aware of its volatility. It can see 2022 was absolutely the darkest period for this market. Most of the people are saying: Cryptocurrency in dead and not working more.
But it’s not a truth. In past years, the crypto market has had a history of jumping back after serious crashes. Keep this thing in mind, despite the downtrend of crypto continues, it’s essential to note that crypto is alive and offering some of the best investment opportunities coming your way.
Let’s get into the blog to know if crypto will recover in 2023 or if we still have to wait for this.
Reasons for the Crypto Crash
The crypto market has already faced massive trouble regarding its market valuation. Although crypto crashes are not new for the digital crypto market, there have been specific changes expected for bitcoin’s price fluctuation.
People who don’t know about crypto should know it’s a relatively new technology. There are so many other reasons that have made the crypto market worst the crypto market including.
1. FTX Downfall
If you have been coming across to, is cryptocurrency dead? There are several factors influencing the crypto prices but the recent one is FTX binance dispute. This factor has caused a significant collapse. An FTX crash has affected the whole crypto market with other currencies like BTC, which declined more than 70% right after 6th November.
2. Rising Interest rates
Increased interest rates were the major factor in the past year of the crypto crash. The United States and other parts of the world have been facing high inflation that resulted in price hikes. Several central banks have increased interest rates to reduce inflation by reducing circulating money. The continuous drop in bitcoin is definitely due to high-interest rates, which impacted the crypto price performances in 2022.
3. Terra Luna Crash
Another reason behind the bitcoin crash in the crypto market is the de-pegging of Terra USD stablecoin, which has ultimately devalued the Luna crypto. Luna fell over 95% in a day which caused so many cryptocurrencies to suffer and face a continuous decline.
4. The continuous drop in BTC prices
LUNA has impacted the BTC prices, contributing to the constant decline in bitcoin prices. The drop was started from $68k in November 2021, and current trading prices around $16k. BTC prices have plunged more than 70%.
5. Crypto Manipulation
Investors have been suggested to sell the assets whenever the crypto market is dropping to avoid further losses. Crypto manipulation and market plunge sell off the critical portion of the assets. The crypto market triggers FUD or fear, which cause further impact the drop in the market.
What Type Of Cryptos Will Survive?
Well, every time the crypto market has crashed and recovered, only a small fraction of cryptocurrency can survive. New innovative projects enter the crypto space and market share. Only two blue-chip cryptos exist in the crypto market, such as bitcoin and Ethereum.
As per the experts, there is not guaranteed that these coins will survive either for the long term or not.
This is the undisputed gold standard in the crypto industry. It’s a new financial system challenging to control or manipulate with fair and transparent money for the crypto world. From the investment point of view, bitcoin is being compared to digital gold. Bitcoin can be considered a super commodity based on divisible savings technology. Bitcoin has the biggest market capitalization and unique network effect from the first cryptocurrency created.
ETH is known as a famous altcoin in cryptocurrency by market capitalization. Ethereum doesn’t run on a single device but simultaneously on thousands of devices worldwide. It has future upgrades and deflationary economics to put Ethereum in its league.
Is It Safe To Invest In Crypto?
To know more about whether is it safe to invest in crypto or not, it’s essential to know what challenges the crypto market has been facing. If we take a look back then it was lasted from 6 months to 2 years. Nowadays, confidence is low, and prices are falling. Compared to other traditional markets, cryptocurrency markets are smaller and highly risky.
The crypto market has already dropped by over 75% from its all-time highs in 2021. Value proposition and cryptocurrency vision haven’t changed, and investing in bitcoin at $20,000 is not different than investing at $50,000. It depends on the risk tolerance and investment strategy. Everyone needs to understand the extreme risk and uncertainty of the market. The best practice is to manage risk and stay engaged in the market to stay calm during such challenging times.
Is Crypto Dead?
Long term future for cryptocurrency is still hopeful, and some experts have claimed that crypto is a dying trend, but everything is so unexpected in this industry. The catalyst that caused the crypto crash throughout 2021 and 2022 wasn’t from the underlying technology but rather from external factors such as the corruption of centralized entities. It doesn’t matter how severe the crash would be, but crypto has always remained stable.
If development continues to flourish, then there is no reason why cryptocurrency can’t bounce back, just like we have seen in the past. Crypto is a faster, fairer, and more secure alternative to traditional financial systems. This narrative is still relevant, so we can say cryptocurrency isn’t going anywhere soon.
What Are The Powerful Alternatives We Would Look for In 2023?
Well, there is no justification that the crypto market would remain low, but high-potential coins are about to emerge this year.
- Dash 2 Trade
This is one of the powerful alternatives to look out for. Dash 2 trade is the latest crypto analytics platform to offer social trading facilities to help investors make informed decisions.
- Robot Era
This is a sandbox-like crypto where users can be represented as robots and build planets. The game allows users to buy lands and create a functioning virtual reality. It provides numerous opportunities for players to earn rewards and users to develop their robot companions. Users can earn through selling ads and charging other players to get entry.
Calvaria is the new P2E card game that most investors are interested in because of the intelligent way of promoting crypto among casual players.
Despite emerging coins, it doesn’t mean crypto is dead. It could take a while before you see certain profits with cryptos in the market and analyze whether a cryptocurrency will die. You are encouraged to invest in rich crypto projects. Don’t go for the investment in the early stages and wait for the excellent market cycles to come.