For the cryptocurrency market, 2022 has been and will continue to be a dismal year. The market is now in a bearish state. This is not the first time that we have experienced a bear market. The present bear market, on the other hand, was not only triggered by crypto-specific idiosyncratic risks such as the Luna collapse and the insolvencies of central lending platforms such as 3AC, Voyager, and Celsius.
Additionally, it is due to the growing strong link between cryptocurrency and conventional financial markets as well as macro threats such as inflation, oil prices, and the conflict between Russia and Ukraine.
The value of Bitcoin, the biggest cryptocurrency, has hit new lows never seen since 2018. In spite of hitting its lowest point in three months the day before, Bitcoin (BTC) rebounded beyond the $19,000 barrier on September 20, which was barely above the $18,500 mark.
Given that the next halving of Bitcoin’s supply is not expected to take place until some time in 2024, investors may have a pretty long wait ahead of them before they witness rallies similar to those that occurred in 2021.
Following the next halving event in 2024, if Bitcoin’s cyclical structure continues its trend, investors may witness new phases of growth and price accumulation; however, this depends on BTC maintaining its market dominance and following established patterns, both of which are subject to rapid change.
Despite the present patterns in the cryptocurrency market, the study appears to indicate that the crypto winter has bottomed out. The price of Bitcoin is one indicator of this notion. In the last 13 years of market cycles, BTC has never stuck below its low band level for so long. Furthermore, other graphs, signs, and elements appear to confirm that the bear market might end before 2023 or early 2023.