Over the past years, the cryptocurrency market struggled quite a lot under the influence of plummeting prices, leading many investors to fear the possibility of losing all their capital. However, those that remained convinced that the market would recover had reason to rejoice at the beginning of 2023, when values suddenly did a 180 and began to recover some of their previous values. However, the momentum wasn’t to hold under the pressure of outside influences, especially the regulatory pressures introduced in the United States.
Since then, however, things have been gradually recovering. Binance has begun noticing increasing engagement from investors looking to learn more about the Bitcoin price fluctuations to decide when is the best time to buy or sell. And while the market is notoriously changeable, with prices constantly shifting, it appears that the tendency is now quite clear, and an ascending path will likely intervene in the near future.
Predictions are common within the crypto environment, as traders feel safer following them. Since prices can change so swiftly and quite drastically, users want to feel like they’re not going in completely unaware and can base their transactions on something objective. Generally, researchers are quite divided on how the market will change, and their views can often be downright contradictory. Yet, it seems like they’ve recently managed to reach a consensus that cryptocurrencies are set for a bullish run.
Since the beginning of 2023, Bitcoin prices have climbed by nearly 90% despite any of the hurdles that intervened along the way. It now seems that this tendency is likely to hold and that prices will remain relatively stable in the future. Nonetheless, traders still expect that there will still be losses along the way. They’re most likely to be insubstantial, though, and leave no long-term effects on the market. In fact, many believe that a certain amount of losses is a clear sign of a bullish tendency.
Twelve months after the planned launch, Bitcoin’s first ETF is expected to be listed for the public this month. Originally scheduled for a launch in July 2022, the release had to be postponed due to the issues the market experienced at the time, with several exchanges and cryptocurrencies collapsing around the same time. The demand was low, meaning that any new products wouldn’t have been profitable anyway.
So far, Europe’s digital assets haven’t been structured as funds but rather as traded notes. When it comes to exchange-traded funds, each shareholder owns part of the asset. Meanwhile, ETN investors own debt security. However, unlike ETNS, ETFs cannot be used as derivatives or leveraged. Guernsey, located in the Channel Islands and west of the Cotentin Peninsula of Normandy, has already authorized ETFs in October 2021.
Since Guernsey isn’t subjected to EU regulations, it was easier for the region to adapt and support the holdings. Analysts have praised the approach, claiming that the British Crown dependency understood the complexity of cryptocurrencies and the adjacent assets and understood the benefits that can come from opting for a regulated status that nevertheless takes the digital finance market into account as well.
Over the past eighteen months, European ETPs have recorded net inflows of nearly $500 million, with close to $400 coming in during the third quarter of 2022. This shows that the market is evolving and will become even more important for the crypto sector.
The global economy has been navigating a difficult period over the past year in the context of the pandemic, as well as rising geopolitical and military tensions. During the last days of May, economists were worried that the US would have no choice but to default on its debts, plunging the entire world into recession.
Germany had announced that it entered a period of regression, as consumption was badly hit by inflation and continuously elevated prices. The International Monetary Fund has also discussed that other nations with a large impact on the global economy, such as China, the United States and the rest of Europe, will also experience a difficult year.
So far, it had seemed that the US managed to bypass the risks, but it appears not that it was just a momentary respite. Currently, the economy is facing the highest recession probability since the 1980s, with the regression likely to occur towards the end of the year or during 2024. More alarming predictions place the potential date for the beginning of a recession in the summer of 2023. At the same time, crypto charts indicate that Bitcoin is likely preparing for one of the strongest periods since its market launch.
The Bitcoin RSI has emerged from the zero line during the last two weekends, a clear indicator that the marketplace is navigating a bullish period. There’s a historical precedent for the moves, as the same situation occurred in 2016. Given that the US presidential elections aren’t far away, many investors expect the price to continue to climb until, during and after that period. The same trend could be observed in 2012, 2016 and 2020, so it is expected for 2024 as well.
Worst bear market
2022 saw Bitcoin in the grips of a powerful bear market, intensified by the simultaneous crypto winter. And while BTC has gone through similar events since 2009, research currently indicates that this particular bear market might have been the worst in history. The chart was shared on the 12th of July and shows that the crypto market went through its toughest period during the last year.
However, things have changed, and Bitcoin is now on an ascending, bullish path that’ll likely affect the altcoins and all other assets positively as well. Some researchers expect that the coin will reach its all-time high soon enough, surpassing its 2021 values, when it was the highest it has ever been. Investors may shortly see those prices topped.
The crypto market is still recovering after its difficult 2022, but the prices have already begun showing strong upward action. Renewed interest and higher engagement rates have also made investors more optimistic about the market’s future.