Crypto veterans across the space point their fingers towards the tapering of interest rate hikes as the reason for the current market crash. The cryptoverse has almost lost over $400 billion in market cap in just 48 hours after the crash. Especially market leaders Bitcoin and Ethereum are slicing through their crucial bottoms with no clear indication of settling down.
However, this volatility is not new for the veterans who have seen the space since 2017. The current market scenario somewhat indicates that we are at the end session of the bear market after months of consolidation.
Specifically, volatility was lacking in the space as the cryptocurrencies were just hovering within the range-bound scale. Crypto maximalists and analysts are seen ecstatic over current market volatility, as they expect a bull market in the next couple of weeks.
Five Things to Be Bullish Even Though The Market Is Bearish!
- Millions Use Crypto: Cryptocurrency acceptance is increasing at a brisk rate all across the world. According to an estimate worldwide crypto adoption has reached 300 million in 2021. As crypto ownership rates are growing at an average of 3.9%, there are expectations of reaching the 1 billion mark in 2022.
- Energy Consumption By Crypto Will Go Down: In the next US congress meet, they are holding a discussion about the energy consumption by cryptocurrencies. Currently, users are really concerned about the same. The true thing is the second most dominant crypto by market cap, Ethereum is planning to migrate to Proof-of-Stake blockchain by July. The transition will cut down 99% of energy consumption and the same implies for each ERC–20 token and all ERC–721 NFTs out there.
- More Apparent Use Cases By Newer Crypto Projects: The majority of the unbanked people in South American country Argentina are now using Binance Smart Chain to accept payments. Reputed credit card firms such as Visa and MasterCard are planning to launch crypto products. Metaverse social media is taking the world by storm.
- More Number of Institutional Players Are Getting Onboard: It may take a paramount of time, pension funds, hedge funds, and state-sponsored sovereign funds are showcasing great interest in crypto.
- The Most Brilliant Minds Innovating Crypto: The crypto is creating new milestones for each passing day. A large chunk of developers has been entering crypto to go innovate in L2 services, CEXs, Fintechs, etc. Moreover, cryptography research is catalyzing at a swift pace and concepts like Zero-knowledge proof are already being used in projects.
Collectively, the future looks optimistic for the cryptoverse. The current bear market has already wiped $400 in billion and at the $1.393 trillion mark, we can expect a bullish divergence. However, the present trend is likely to continue for the next couple of weeks, but recovery is mandatory.