Rumors of Crypto Death and its Exaggeration

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Don't you think that the rumors of crypto death have been exaggerated many times before? And would you expect another recovery?

These digital currencies are said to have game changing implications for every corner of the financial world. The crypto market was of to a good start in 2023 too.

The economy may go through a recession in 2023 but it should come out stronger on the other side.

Techspot

There are some growth catalysts right now which are:

The Bitcoin Halving

The next bitcoin halving is probably less than a year away. The exact date may not be known but the current rate of mining rewards should fall near the end of April 2024.

You may have noticed what happens after a few months later. It is something that is believed to spark a fresh bull run next year.

Future Framework For Crypto Regulation

According to a report, Regulators and cryptocurrency projects are collaborating to develop a framework for future crypto regulation.

The lawsuit from Securities and Exchange Commission (SEC) against XRP managing body, Ripple Labs is awaiting judgment.

If that could happen it may bring some clarity on how crypto market should be treated.

Binance confirmed the regulatory pressure in United States and it has also exited Canada. Binance is said to be now considering to establish itself in UK.

The Inflation Crisis

The inflation crisis gave many people the idea that traditional financial system may not be perfect after all.

Back in the Covid-19 pandemic, in June 2020, the value of fiat money went down while the value of assets with a limited supply like stocks, real estate, shares and Bitcoin went up. It is said that Bitcoin attracted traditional investors who saw Bictcoin's potential as a hedge against inflation.

The more robust crypto regulations the sector may have, the better is for the industry and its mass adoption.

Cryptocurrency is a highly speculative investment which has a history of dramatic ups and downs. It has experienced crashes before.

For investors, the crypto market has served as a safe haven and a source of unpredictability but its said that crypto is beginning to behave more like the traditional asset classes.