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?
After the recent Luna crypto crash, several leading cryptos are now down. This is all thanks to the existing bear market sentiment that also triggered a massive NFT market crash.
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 bull market prices.
The global crypto market cap has reached $1 trillion once again in recent weeks thanks to Bitcoin's recent surge. The bear market sentiment continues to affect the prices of the whole market.
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Bitcoin is currently sitting at $27,591 while the second-largest crypto by market cap, Ethereum, is trading at $1,754.
Another reason cryptocurrencies are falling is due to increased inflation, disappointing CPI data and decreased user interest. With the SEC cracking down on crypto exchanges in the U.S. and unregistered securities things may get rough for the market going into 2023.
While cryptocurrencies are struggling to stay afloat, several crypto critics are also bullish on Bitcoin's future, 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.
From Andreessen Horowitz:
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."
When will Crypto Recover?
In the latest Ethereum news, the Ethereum triple halving can help Ethereum to gain momentum alongside its PoW counterpart ETC.
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 $0.316353, up 1.2% 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.