The crypto market’s weakness is putting a strain on bullish predictions. Crypto.com predicts that by the end of the year, 1 billion people will have invested in cryptocurrency. It’s a big challenge. According to the company’s research, not only is it more than quadruple what it was last year, but many believe Bitcoin and other digital assets are entering a crypto winter.
Bitcoin has lost about 45 per cent of its value since its November high due to a sustained decline in risk assets this month. It’s enough to reawaken fears of a long-term bear market similar to the one that occurred in 2018. Evangelists, on the other hand, aren’t backing down from calls for the widespread use and higher pricing.
According to Gritt Trakulhoon, an investment analyst at Titan Global Capital Management USA Inc, this year will be “the first year where you cannot say cryptocurrency is not mainstream anymore.”
The bulk of those who invest in digital assets does so based on speculation, hoping to profit. However, several high-profile personalities have backed cryptocurrencies, including a new wave of politicians and athletes who accept Bitcoin as payment, fueling speculation about broad acceptance.
Cryptocurrency investors who are new to the market still face challenges. According to Anastasia Amoroso, chief investment strategist at iCapital, there may be more moments of extreme volatility ahead as the market grapples with uncertainty over Federal Reserve borrowing rate increases. Furthermore, understanding how to use a wave of Web3 applications remains difficult for the general public.
Despite the challenges, bulls believe that consumption will increase this year. According to Crypto.com, ownership of digital assets surged by 178 per cent to 295 million investors in 2021, a watershed event for the industry.
According to FTX Chief Executive Officer Sam Bankman-Fried, the 1-billion-dollar mark is within sight.