Will the Crypto Market Bounce Back?
You don’t need to be an avid trader to know that the crypto market is not looking good at the moment. In fact, the crypto market is currently in bear status as a result of the global financial climate, among other factors. For those new to the trading space, a bear market develops when a market has experienced a period of prolonged price declines. With the cryptocurrency bear market, things are looking rather bleak for current and potential investors. There are, however, a few events that could curb the declining crypto market and get it back on its feet.
The first event that could help the crypto market bounce back would be a successful Ethereum (ETH) Merge. Over the past five years, one of the most anticipated crypto developments has been unfolding: the transition of the ETH network from proof-of-work to proof-of-stake. In simple terms, proof-of-work is a race between crypto miners to solve cryptographic algorithms and authenticate transactions in return for blockchain rewards, whereas proof-of-stake assigns randomly chosen validators to authenticate the transaction and receive crypto in return. Despite this project having several setbacks over the past five years, the official switch is within reach following the efficacious completion of the Merge trial on a public network called Sepolia. A big hype has been transpiring in the crypto sphere around the ETH Merge, and this on its own could be a big help to get the crypto market back on its feet. On the flip side, the big merger could also result in an initial craze where investors flock to the market and prices briefly surge, only to plummet again once the state of the world’s finances becomes the main focus again.
The next crypto saviour would be the large-scale adoption of Bitcoin as a legal currency. In 2021, El Salvador officially became the first country in the world to accept Bitcoin as a legal currency for use by its citizens. The Central African Republic followed, adopting Bitcoin as a legal currency in 2022. While this trend is growing, it will take one of the big dogs to do the same to achieve a real step forward for crypto by encouraging major adoption for the rest of the globe.
Lastly, a third event that could pull crypto out of the deep end would be the integration of Bitcoin as a payment option by a leading company. The fact that Bitcoin and other cryptocurrencies are not widely accepted is the main reason why people choose not to trade with them. Although there are options available to access the value represented by crypto, such as debit cards and online payment integrations with certain platforms such as Shopify, the ability to make purchases by transacting directly on a blockchain network is rather finite. Elon Musk has proven on multiple occasions that the sheer mention of incorporating blockchain-based payments has the ability to spark market interest in the respective cryptocurrency. This indicates that if major companies start integrating crypto payments, it could result in the boost that crypto needs to recover from bear status.
Understanding that the volatility of the market can cause investors to be skeptical, entering into the market at the right price point is getting easier and easier with the evolution of trading platforms. It’s clear that adoption and massive uptake of the usage and investment in crypto will help drive the market to new heights. Using trading platforms like Bitindex Prime that help identify markers to enter into the market is a solid way of going about trading and investing.
Taking all of this into consideration, it is evident that there is hope for the crypto market to regain its strength and soar to new heights as more and more people start investing in and trading with cryptocurrency. Especially since automated technology is on the rise, significantly lowering the barriers for new traders who have no experience in crypto trading.
Disclaimer: This is a guest post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.Source