Cryptocurrency has officially entered the bear market phase, with the value of several altcoins and stablecoins plummeting to 90% below their all-time high. The current negative crypto market scenario has compelled investors to speculate on when will crypto recover?
The recent crypto crash has led several crypto enthusiasts to worry, prompting them to contemplate and ask questions related to when will the crypto market regain its former glory?
When Will Crypto Recover?
The current bear market sentiment has led many cryptocurrencies to fall below their average trending prices.
The global crypto market cap has slipped below its $1 trillion mark and now sits at $826 million. The bear sentiment continues to affect the prices of the whole market. The recent FTX-Alameda controversy has negatively impacted its exchange token FTT, which in turn has affected the prices of all major cryptocurrencies.
However, it would be too early to anticipate bullish numbers considering the ongoing bear market is yet to end.
The NFT market crash alongside the news of the Coinbase bankruptcy rumours has impacted the overall crypto market negatively, tempering its bullish stance and not permitting the market to break free from its ongoing bearish mode.
Apart from that, several other factors have affected the prices of cryptocurrencies this bear season.
Some of the leading factors include Celsius Network's decision to halt its withdrawal which triggered a market-wide crypto crash. The recent crypto crash has affected several crypto firms including Voyager capital who's the latest crypto company that has filed for bankruptcy.
Another reason cryptocurrencies are falling is due to increased inflation, disappointing CPI data and decreased user interest.
While cryptocurrencies are struggling to stay afloat, several crypto critics are also bullish on Bitcoin, adding that the bear market sentiment won't last long. Andreessen Horowitz, a venture capital company, released a State of Crypto report stating that this is the fourth crypto winter. He said:
"The previous ones came in 2011, 2013, and 2017. But if you zoom out, all you see is progress. These cycles appear chaotic from the outside but have an underlying order."
The Co-Founder of Polygon Sandeep Nailwal has also reiterated similar sentiment stating that he's bullish on web3 and crypto market recovery.
In an interview with Verdict, Alan Vey, the founder and CEO of blockchain network provider Aventus stated how the bearish crypto phase is necessary to "weed out irrelevant crypto projects."
Of course, not everyone is convinced. Bill Gates spoke about cryptocurrency during a TechCrunch event on June 14. Criticising NFTs and crypto, he said they are: "100% based on greater fool theory."
Presently, Bitcoin is trending at $16,606.77, up 0.3% in the last 24 hours.
When will Crypto Recover?
The highly anticipated Cardano's Vasil hard fork upgrade has finally been deployed on Cardano's mainnet, which can help ADA recover its price momentum. However, at press time, ADA is sitting at $0.317717, up 1.1% in the last 24 hours.
However, the price volatility factor remains high for all leading cryptos. it is extremely hard to guess when will the bear market sentiment will end for good. It would be an elaboration to put a date on when will crypto prices regain their former glory. However, we just have to wait and watch as the market corrects its own trajectory and regains its speed and momentum back.