Crypto is making a big comeback. Will it last?

Bitcoin lost more than half of its value in 2022. Currently around $ 23,000, the price of a single Bitcoin is more than 65% below last year’s record high of nearly $ 70,000. The The value of all crypto It has fallen from about $ 2.2 trillion at the end of 2021 to just over $ 1 trillion now.

Bitcoin, the world’s largest cryptocurrency, makes up about 42% of the total market, but 2022 was just as terrible for other owners. Cryptographic assets like that Coinbase.. Stock prices of brokerage firms have plummeted 75% so far this year.Rival share Robin hood I lost half of their value.

Solana has risen by more than 35% in the last seven days, while Ethereum (abbreviated as Ethereum) has risen by nearly 45%. The second most valuable cipher, Ether, is widely used to fund the purchase of irreplaceable tokens. NFTA digital asset that has swept the world of collectibles.

Cryptographic comebacks can be the verification of the sector’s biggest supporters. At the same time, it should also serve as a reminder that early markets are likely to remain volatile for the foreseeable future.

Expect more volatility

Joel Kruger, market strategist for the LMAX Group, said: “This is still an emerging market.”

Bitcoin’s rebound has been a concern in the short term, lagging behind the sharp rise in ether and other small cryptos, Kruger said. He added that a wider group of cryptocurrencies and equities may not enjoy a more meaningful recovery until a “healthy bounce” occurs in Bitcoin.

Investors should also consider that there may not be enough interest in cryptocurrencies to justify the thousands of coins, tokens and exchanges out there. In that case, only the strongest ciphers will survive and prosper.

“Cryptocurrencies have behaved like the dot-com era,” Adam Grealish, head of investment at Wealth Management’s FinTech Altruist, said in an email. But he added that many such great ideas and companies have been launched.

The same scenario may apply to cryptography. “When the market gets tougher, companies with weaker positions and weaker business models will feel a lot of pressure,” Grealish said.

Don’t tell it to the crypto bull. Broader rallies are increasing the market share of almost every company associated with the industry. Some cryptocurrency mining companies that use computers to solve complex mathematical formulas to generate new Bitcoin have risen sharply recently.

So has Bitcoin, Ether and Top Cryptostock finally bottomed out? There are some signs of hope.

Winners and losers

Also, the turmoil in this sector seems to have wiped out winners and losers between both listed and start-ups.

FTX recently agreed to provide credit to the struggling crypto company BlockFi, and its billionaire CEO Sam Bankman-Fried has taken advantage of FTX’s financial strength to take advantage of other distresses. We also talked about bail out a cryptocurrency company.