Cryptocurrency: After the Crash
Cryptocurrency prices are known to fluctuate wildly. Sometimes the market is up, sometimes it’s down, even within a matter of minutes. You can go to bed and wake up to astonishing changes in prices.
Bitcoin has played a significant and leading role in the cryptocurrency community. Being the first to arrive on the scene, the Mother Coin has maintained its top position by market capitalization and is worth a healthy chunk of the whole crypto industry.
As a result of this sustained dominance, when Bitcoin appreciates or depreciates, it has a ripple effect on other cryptocurrencies. It is observed that altcoins shed or gain value, sometimes more than Bitcoin itself. Bitcoin’s dominance in the market makes it a frequent catalyst for volatility in the crypto industry. The crypto market has tumbled lately.
Bitcoin price has dropped 41% from an all-time high of $68k down to sub-$40k in the last few months. However, such drastic drops are nothing new for seasoned BTC holders, who saw a 2017 run-up to $20k, only to watch it fall below $4k in the years following. After hitting an all-time high of $64,800 on April 14, 2021, Bitcoin shed more than 33% of its value by May 18. The market lost more than $300 billion (USD) in the process.
Before this, Bitcoin had been on a remarkable bull run. The cryptocurrency saw roughly 1500% gains from the $3,800 it was worth in March 2020 to its peak in April 2021. After such a strong trend, many started to question the possibility of a market correction
Cryptocurrency Predictions for 2022 and Beyond
The “cryptocurrency crash” which started in early 2022 is something that those that have been around crypto for a while have seen before. With some similarities to the 2018 crash, it remains to be seen whether or not the crypto-verse is currently at the beginning of another crypto winter, or if cryptocurrencies will quickly bounce back later this year.
However, as blockchain technologies and cryptocurrencies continue to develop and offer new features, functionality, and capabilities – mainstream adoption looks increasingly likely in the coming years.
In such a world, overall demand for cryptocurrencies looks to rise as people add this new asset class to their portfolios and acquire them to power transactions on-chain. With this, total market capitalization for the industry is poised to break its 2021 highs of $3 trillion, BTC is well-positioned to break $100k and fulfill its vision of being digital gold, and all other cryptos which will be needed to power critical infrastructure and daily life will be pulled up along with this growth.