There is a feeling of oddness as we wonder whether the crypto bottom is already in. In fairness, it’s a feeling we’ve grown accustomed to over the past few years. Every dip turns into a game of limbo: how low can we go? Still, having endured the bear market of 2018, we have to ask: is this really the worst this cycle can do?
If yes, it tells us quite a bit about the progression of decentralized blockchain technology. Five years ago, Bitcoin’s bottom was $3,000. Now, it appears to have been $15,000. We like gold, but it can only hope for higher lows of this magnitude. We still don’t know if the crypto rebound has begun, and these rebounds aren’t always straightforward. There is plenty of FUD during every bull market. But if Bitcoin can bottom near the ATH of just five years back, it’s hard to resist calling it a marquee asset.
Sentiment is almost surprisingly optimistic. As we often point out, we’re really probably only in the beginning of a global recession. Yet a recent survey of 10,000 crypto investors showed that 64% believe the worst in this cycle is over. Do we really need anything else than sentiment in the crypto market? These days, with companies forced to downsize, maybe. But still, it’s something.
Other points of interest from the survey tell us that trust in the crypto stablecoin hasn’t collapsed even if some projects of this kind have. Neither has trust in exchanges. Benzinga makes it seem as if 53.6% of crypto users is a large percentage. To us, it shows that as much as 46.4% of crypto market participants are HODLers and are using offline storage despite all the convenience of hot wallets. Bullish for long-term prospects, no doubt.
Another survey reported that 69% of crypto users have remained undeterred by the bear market. To us, it’s almost strange that 31% of crypto investors still represent weak hands after all the growth the market has seen. The survey also mentions that inflation is making crypto more attractive, which sort of brings us to our main point.
How does a decentralized cryptocurrency handle monetary independence without the support of central banks? We’ll go on and on how central banks are hampering crypto recovery, but while we do, it seems to have went and recovered all the same. If crypto can truly show independence of the financial system to this degree while every other market suffers the ill effects of monetary tightening, Satoshi Nakamoto’s manifesto will come alive.
As for how does the rebound of cryptocurrency prices impact the development of decentralized finance ecosystem? That should be an easy one: more money, more projects. Crypto companies have downsized and downsized, only for the market to spring back in a fairly unexpected fashion. Have they learned their lesson? Whether this really is a recovery or momentary respite will probably dictate how companies behave for the remainder of the recession, and during future bear market cycles.
However things develop over the coming weeks and months, we can without a doubt say that Bitcoin’s jump from $15,000 to $23,000 has been impressive. To be clear, we’re trying to keep our enthusiasm in check. The top token has done nothing but gain as of late, showing no signs of slowing down, and is climbing further right now. If we wanted to go and make bullish forecasts, we’d have no shortage of ammunition. But we’ll let the market do the talking for the time being…