Will bitcoin recover after the recent crash?

  (photo credit: INGIMAGE)
(photo credit: INGIMAGE)

Investors and financial experts alike are all pondering whether or not the cryptocurrency market will rebound from the recent crash. 

The leading coins have a good possibility of recovering from the crypto meltdown and regaining their value in the long run. However, cryptocurrencies are highly volatile, so there is always a danger that they won't recover stronger, particularly in the case of coins with lower values and less widespread adoption. It's critical to investigate some of the variables lowering the value of Bitcoin and other altcoins in order to comprehend the likelihood of a crypto market rebound.

How severe is the cryptocurrency market crash?

According to the most recent BTC price chart, Bitcoin fell by over 67% between October 12 of 2021, and October 12 of 2022. The value of cryptocurrencies as of October 2022 is around 70% lower than the value per coin in November of the previous year. Within the course of a year, the prices of numerous other reputable digital assets fell by a sizable amount. Altcoins have the propensity to mirror Bitcoin price patterns, and some estimate that the worldwide cryptocurrency market has shrunk by around 60% over the past year. 

The cryptocurrency market has been relatively constant since June 2022, with a market cap that ranges from 800 billion to 1.2 trillion. From June to August 2022, there was a tremendous increase of 50%, going from $800 billion to $1.2 trillion, which can appear to be a significant change. Later, the cryptocurrency market fluctuated, reaching its current worth of around $900 billion since August.

According to an analysis, the cryptocurrency market currently moves more in line with the stock market than it did previously. Despite the fact that cryptocurrency is becoming more and more popular, more businesses are beginning to accept it as a form of payment every year. Having said that, none of us is certain that the coins we use now will still be in use in a few decades. When it comes to more reputable cryptocurrencies, like Bitcoin, if you plan to hold onto them for a while, they could offer a little bit more stability and high levels of protection.

You should exercise extreme caution while investing in cryptocurrencies. You should never risk more money than you are ready to lose. And as cryptocurrency is a very volatile market with a sketchy track record, this rule should be strictly followed. However, if you are affluent enough to invest more money and you are prepared to take a risk for significant gains, you might think about purchasing cryptocurrency in a bear market, particularly in the reputable group of currencies that could represent a huge sum.

The most talked-about issue in 2022 is whether or not the cryptocurrency market will revive. 

The near future may not be quite as appealing for the crypto market. Bitcoin and other cryptocurrencies continue trending downward at a much slower rate than during the first half of 2022. The crypto market is under pressure, but unlike in the past, the crypto market has previously recovered. The blockchain, the technology that supports cryptocurrency, is essential to its viability. The metaverse, FTS, and even NFT gaming are examples of how bitcoin technology is evolving and seems more prevalent and promising than ever. Some industry analysts predict that Bitcoin will reach $10,000 in addition to recovering from the recent fall.

Many coins will probably disappear as this most recent crypto winter comes to an end. There are multiple cryptocurrencies that have no chance of ever recovering. However, the so-called "blue chip" cryptocurrencies, such as Bitcoin and other market leaders, are more likely to recover from the crisis sooner. Coins and the top 500 by market capitalization have the highest likelihood of producing positive returns over time, regardless of price.

Final thoughts 

If you're not a risk-averse trader, it is still not too late to purchase the dip of Bitcoin and other cryptocurrencies. Your chances of profiting from your investments can be significantly increased by sticking with currencies with a solid reputation and a sizable market cap. From a variety of various cryptocurrency exchanges that are accessible online, you can easily purchase the crypto of your choice.

This article was written in cooperation with Bazoom Group