If you are a crypto follower, you will know that 2022 has been a dramatic year. The rise and fall of crypto tokens shook the market globally.
Crypto performance in 2022
Not just cryptos, 2022 was not a favorable year for any type of investment. The US stock market saw a crash of more than 10%. Bonds on the other end fell by more than 15%. But the cryptocurrency market faced a heavy fall. The market shook by more than 50% making investors lose their entire savings. For more information about golden profit click here: golden-profit.co
No one would have predicted a market crash of cryptos in 2022. In 2021, the crypto market had a favorable performance. Top tokens including Bitcoin, Ethereum, and others performed great. Bitcoin made investors brutally risk by touching an all-time high of $65k per token. But this was a short-lived affair.
Factors that led to a price surge in 2022
Various factors contributed to a crypto market crash. Indeed, the crypto market does not have any direct impact on economic conditions. However, 2022 was different for various reasons. The primary factor for the crypto crash is the war condition in Ukraine and Russia. While Ukraine was able to raise huge donations through cryptos, the condition did not favor performance.
Popular tokens fell in price. Bitcoin, priced at $65k surged down to $20k per token. Many investors who plugged their entire life savings had a run for their money. The market did not forecast a recovery. Experts soon declared the condition as crypto winter. Popular tokens like Terra were wiped out from the market completely. Despite being a stable token the prices fell below $1 per token.
Yet another reason for the market crash is the collective decision to raise interest rates. There was a heavy tightening of fiscal policies and regulations. The economic pressure forced many investors to let go of their holdings. This condition had an indirect impact on the crypto market as well.
The speculative assets started feeling pressure when central banks revised their policies. Low-risk and high-yielding assets started to feel the impact. Banks started to increase the interest rates keeping tight control on the liquidity of assets. When prices of risk assets began to decrease crypto market crash began. Investors started selling off their holdings to the global market. This indirectly contributed to the condition wherein tokens were higher. However, the demand for such tokens never increased creating a huge gap in supply and demand.
Despite the economic condition, experienced investors feel this is the right time. The prices of various tokens are lesser than compared in 2021. It is easier and more affordable to invest in various tokens in the current market condition. Also, investors could use this opportunity to study the crypto market and make the right decision.
Ethereum is the best bet for 2023
Now that we are at the end of the year 2022, the crypto market is trying to recover. There is a positive trend in the pricing of many tokens. But yes, you cannot expect the crypto market to bounce back to $3 trillion in a month. The journey is long with the market recovering slowly.
Popular tokens including Bitcoin and Ethereum are continuing to see a price increase. If Bitcoin is the gold, then Ethereum is the silver in the crypto market.
In the current market condition, many investors predict Ethereum is the best bet. Ethereum token is built on the blockchain philosophy and replaces many drawbacks of BTC. The platform is also scalable and flexible. Many decentralized applications today run on the Ethereum platform. The platform has also made it easier for NFTs to run on it.
As of today, Ethereum is trading at $1k per token. This is a 100% increase in token price as compared to 2019. The price of Ethereum is going to see a steady increase in the current year.
If you are a crypto investor, then Ethereum is your best bet for investment in 2023. The development team is also planning for some internal developments within the platform. This will help eliminate the current flaws making it easier and more scalable to use. Additionally, NFTs using it as their building block will help increase their market value.
Other than ETH, investors may also try other tokens. You could learn more about ETH tokens on Bitcoin smart.