The Development Of Cryptocurrency After The Pandemic
January 27, 2023 (Investorideas.com Newswire) The likes of Bitcoin, Ethereum and other cryptocurrencies have seen some major fluctuations during their brief existence in the trading arenas. Everyone remembers the 73% decline registered in 2018 for Bitcoin...
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Serious Growth During the Pandemic
After the terrible year that Bitcoin and other cryptocurrencies faced in 2018, they actually made a significant comeback in the years that followed. 2020 - the first year of the pandemic - saw some remarkable rises in value and interest for cryptocurrencies.
In March 2021, Bitcoin had experienced an increase in value of 640% from the same time period the year before. Several of the other top cryptocurrencies had experienced similar increases, making coin prices soar in the second year of the pandemic. It was a remarkable upswing in such a turbulent time.
One of the leading factors contributing to this is theorized to be those turbulent times. People were looking for alternatives to traditional investments, especially with so many industries being brought to a halt by lockdowns. Cryptocurrencies showed that they were immune to restrictions put in place by local and national governments around the world.
Major Declines in 2022
Unfortunately, the boom wasn't to last. In 2022, things started to normalize around the world as governments opened up their countries and restrictions were eased in most places around the world. Investors went back to focusing on more traditional stocks and other areas for their trades.
By the end of 2022, Bitcoin and Ethereum had dropped by 65% and 68% respectively. These figures aren't quite as bad as the 2018 decline, but they represent the second worst drop in the history of cryptocurrencies.
One of the major contributing factors to this decline has to be due to the FTX cryptocurrency exchange filing for bankruptcy in November of 2022. The US government is also investigating fraud charges against the CEO of the platform.
Looking Toward the Future of Cryptocurrency
It's true, cryptocurrency has taken a significant knock in the last year. However, that doesn't mean that you should ignore it as an investment opportunity, especially when you look at the investment opportunities highlighted by sites like Bitcoin Codes. We've already seen that crypto and its believers can endure and rebound, as they did in 2019.
Cryptocurrency is still in its infancy. There is going to be turbulence as the world reacts to market swings and various other aspects that are out of the control of the currencies themselves. We still need to actively develop the ecosystem for digital assets if the industry wants to avoid future fluctuations.
The aim now for traders and investors is to seek stability within the industry. This will only come through solid investments in cryptocurrency that stay the course over time. The value of individual cryptocurrencies may be down, but the interest and activity within the sector is still going strong.
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