Experts Assert Bitcoin and Broader Crypto Market Will Survive Market Slumps and Tighter Regulation
Summary:
Despite experiencing multiple market downturns and being declared 'dead' numerous times by mainstream media, Bitcoin (BTC) and the wider crypto market are unlikely to die, say experts. Predictions of Bitcoin's demise are often linked to bear market conditions, reduced values, or a possible 'crypto winter', but as Tomasz Wojewoda, BNB Chain's Business Development Head explains, it would require an event such as the entire community losing interest for BTC and the crypto market to truly fail. Regardless of incidents like the FTX saga and the volatile market situation, Wojewoda holds firm that there will always be a demand for crypto, and regulation won't kill cryptocurrencies. Despite the countless cryptocurrencies exiting the scene over time, both experts concluded that Bitcoin, due to its vast network and user base, is likely to endure long term.
Numerous pronouncements of Bitcoin's demise have come during market downturns, yet some experts suggest that only an extreme event could cause a true downfall. 99Bitcoins, a site that tracks mainstream media's "death" declarations of Bitcoin (BTC), says the top cryptocurrency has "died" 474 times since 2010. Those heralding its demise often cite it as proof of Bitcoin's lack of viability, but killing off the cryptocurrency could be more difficult than expected, state some specialists.
Tomasz Wojewoda, BNB Chain's Business Development Head, opines that more than a bear market or crypto winter is needed to kill BTC and the wider crypto market, even in the wake of the sharp decline from 2021's record highs. A bear market is defined by a drop of at least 20% in crypto value that continues to fall, whereas "crypto winter" refers to an extended phase of depressed prices. Wojewoda suggests an extreme event such as the entire community losing interest and exiting simultaneously could cause BTC and the market's demise. Despite certain controversies, he maintains his optimism for crypto demand, citing that market trends move in waves.
According to CoinGecko, a year after attaining highs over $69,000, BTC lost more than 60% of its value in 2022. As of 2023, its value has somewhat recovered but still 40% lower from its all-time highs. Wojewoda declares such challenging times can be advantageous for the industry, filtering out negative elements and enabling strong projects to improve user experience.
Not even regulatory measures could kill crypto, Wojewoda adds. Despite numerous lawsuits and increasing regulatory actions, particularly from the United States Securities and Exchange Commission, crypto and BTC still stand strong. Wojewoda views regulations as a positive force for the industry, ensuring user safety and providing a clear framework for crypto.
While Wojewoda acknowledges that not all cryptocurrencies will survive long term—with only an estimated 8,848 active from over 10,500 in existence—he is confident the market will endure. He does not see Bitcoin among the potential casualties, its network effect and user base offer a considerable advantage over other cryptocurrencies.
Markus Thielen, Head of Research and Strategy for digital asset investment firm Matrixport, also doubts the threat of a bear market or crypto winter to the crypto market and BTC. He remarks that despite the exit of many during bear markets, it is a part of the process rather than an indicator of crypto's demise. With each passing bull market, new narratives are built and the regulatory level playing field is established. Thielen concludes: "Bitcoin will likely never disappear, as its concept appeals to human fallacy.
Published At
12/8/2023 5:01:00 PM
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