Updated: Aug 2, 2022
There is one question that is on every crypto investor's mind - is growth actually possible in this current market?
What needs to realistically happen for more prices to bounce back?
Cryptocurrencies, their value and worth can be easily compared to the ride on a rollercoaster. The cycles that we have seen have seen the highest of highs, and the lowest of lows. The last major downturn started early in 2018 and lasted nearly 2 and a half years.
The Economic Times recently quoted statistics showing how Bitcoin, the largest cryptocurrency by market capitalization, plummeted from $68,000 in November 2021, and fell below $18,000 (a loss of over 70%). Ethereum has followed a similar pattern. Whilst Bitcoin rebounded somewhat, to around the $20,000 levels, a slightly longer term view looks nothing short of a blood bath over the last few months. Time Magazine noted that the crypto market has increasingly tracked with the traditional stock markets, meaning that various political and economic factors such as rising oil and gas prices, food price increases, job insecurity, global pandemic, wars, invasions, you name it, has negatively impacted both the crypto and traditional markets. The most recent collapse of the TerraUSD (LUNA) highlighted additional issues within the crypto market, that all massively impacted many people’s investments. Many top investors believe that the crypto space is set for another extended period of low prices, and increasing negative instability.
Speaking to various early crypto investors about previous crashes, the overall sentiment highlighted that during 2018/2019 crash, there was a far more negative outlook than what we are seeing from investors now. Whilst we know it is not going to be a quick bounce back, 4 years on from that crash, cryptocurrencies and projects have far more genuine use cases, as well as users that we can leverage growth from. NFT’s, DeFi and stronger APY’s are all ways that even in this dip investors are seeing positive returns from.
Looking at the current 15 best NFT projects, a recent list compiled highlights that there are some very lucrative ROI’s possible, if you are able to get in early on projects, as well as trade these NFT’s at the right time, there are most certainly growth opportunities in the market. What is most interesting to note is the utility function of these NFT project.
“The cycles that we have seen have seen the highest of highs, and the lowest of lows. The last major downturn started early in 2018 and lasted nearly 2 and a half years..”
So what needs to realistically happen for more prices to bounce back? The most obvious is a recovery in the stock market, which will see much needed liquid capital flowing back into the crypto market. But for now, there is money to be made in this bear market. The trick is knowing just where to look. This starts with utilities. Identify the real use cases that allow for a proper foundation to be set, with utilities as the cornerstone. From there it is most certainly growth possibilities in this bear market.