The year 2022 has turned out to be a complete bear season for the crypto market. With still struggling to reclaim the 20K level in November 2022, many analysts are now supposing that the year will end bearish for Bitcoin and other Cryptocurrencies. The most important question which everyone seems to be asking at this point is: When will the Crypto prices recover again? Many analysts have previously forecasted that the crypto market will recover by year-end, but such a forecast has proved abortive so far.
To answer this important question of when the price of Bitcoin and other Cryptocurrencies will recover again, it is very necessary to understand first the major reason why the prices of Bitcoin and other Cryptocurrencies have been down since 2022. This will help us predict when the prices will likely recover again. This work will therefore help you understand the major reason for the bear season witnessed this year and the correct time to hope for the market to recover again. You will also learn from this work how to invest in various Cryptocurrencies, including Bitcoin and altcoins.
When will the crypto market recover again?
The crypto market has been in a bear season since 2022. The major cause of this bear season witnessed in the crypto market owes to the series of aggressive interest rate hikes embarked upon by the Fed and other Central Banks across the globe, which caused investors to withdraw from risky assets, including Crypto trading, stocks, Commodities, etc. The Fed has carried on with this aggressive interest rate hike up to this point and will further declare the new rate hike during their next session this month. This will further discount the prices of all crypto assets as more capital will flow out of the crypto market once the interest rate is hiked again.
For the crypto market to recover again, it is necessary that the Fed will discontinue the aggressive interest rate hikes, which is the major factor keeping the market down till this point.
Some analysts believe that this month’s expected interest rate hike will be the last for the year 2022. This means we can expect a little rally in December to mark the year-end.
Notwithstanding, the crypto market can only recover fully again when the Fed begins a reversal process known as quantitative easing. Many expect this to commence in 2023.
Can one make profits from crypto during the bear season?
The fact that the prices of various Cryptocurrencies tend to fall during the bear season has often dissuaded investors from investing in crypto during the bear season. Some have often questioned the possibility of making profits from crypto trading during the bear season. While making profits might be worrisome for long-term spot traders, there exists an alternative way of making profits from crypto trading during the bear season. This is through . Trading crypto as CFDs allows the trader to either long or short the market depending on the market trend. This means CFD traders can short the market during the bear season and benefit from the downward trend also.
Is cryptocurrency a good investment package?
Crypto trading has become a lucrative investment for most investors today. Many who believe that Blockchain technology will likely become the future of wealth have embraced crypto trading. While crypto trading could be advantageous, there are as well many risks associated with trading today. It is, therefore very necessary for investors to understand the risk involved in cryptocurrency trading before ever proceeding with such investments.