Until recently, the cryptocurrency market was going through a long and uninterrupted bull run. However, true to its highly volatile nature, it has come crashing down in recent days. Most experts in the crypto market believe the market goes through four-year cycles. Some believe that the market crash was a sign that the market was coming to the end of the cycle.
What is going on with Crypto?
Until recently, BTC, and ETH, the top crypto coins, were hitting new record highs. Unfortunately, the highly volatile nature of the crypto market has seen those gains fall. In the past week, the price of BTC fell from a high of $66,000 to around $58,000. That is a 12% drop in just one week.
As is often the case with the crypto market, when the price of BTC fell, the rest of the market followed. Other crypto coins began to see their value dropping. Some of the reasons why crypto prices might have fallen are:
- A new infrastructure bill in the US that is not favorable to crypto for tax purposes.
- Fears surrounding Mt. Gox settlement and the court case around Satoshi Nakamoto’s 1.1 billion BTC wallet.
- Twitter ends rumors that it could soon make a significant crypto investment.
- Investors are worried about the market being flooded with meme coins and NFTs.
The Future of the Crypto Market
Some of the experts predict that the current Bull Run has reached the end of its cycle, just like it happened in 2017. Others opine that the crypto market is in a supercycle that will go on into 2022.
However, the volatile nature of the crypto market makes it hard to predict what could happen. Most crypto experts admit that prices in the crypto market are mainly driven by speculation. However, technology in this space is advancing quickly in areas such as Decentralized Finance. However, progress takes time for real-world benefits to be realized. While the technology is promising, it will take time for the benefits to permeate to the masses.
Are there opportunities in this Volatile Market?
While the crypto market currently seems volatile, there are still opportunities to invest in this market. For instance, one could consider investors in the stock of Coinbase. Investing in the infrastructure instead of the crypto coins means that there is less volatility exposure.
Many other projects have promising long-term plans. One such project is oschain.io. Open source chain is designed as a blockchain-based platform that brings the safety and efficiency of the blockchain to the open-source electronic industry. It is a value-based system that is based on a transparent algorithm for a value-based incentive system for smart contracts. It is designed to revolutionize the productivity of engineers in this space.
You can also engage in spot trading in the crypto market to take advantage of fluctuating prices by the minute. In general, the crypto market has grown a lot in the past ten years, despite remaining highly volatile. For instance, Bitcoin was worth less than $1 in 2009. While it has made some losses in recent days, long-term investors have still experienced massive gains.