Bitcoin has been declining since the advent of the bear market. But the bearish trend escalated in the past three weeks due to the lending crisis.
The Terra collapse, the macroeconomic situation, and the current FTX crisis has made 2022 a terrible year for crypto. The fear of more losses has led to massive withdrawal from exchanges in the past weeks. Investors and traders are making moves, seeking ways to reduce the risk of more losses.
But what does the future of Bitcoin looks like? Will Bitcoin recover previous losses, or will it continue to plunge further? A few investors still maintain bullish confidence in the asset and believe BTC will regain its previous glory. They hope the situation will soon pass and Bitcoin will recover its original price.
2023 Will Be Better For Bitcoin And Other Cryptocurrencies: Tom Lee
The Head of research at Fundstrat, Tom Lee, is among those with a bullish stance on Bitcoin. He is confident that Bitcoin could be a good investment for some investors. In a recent interview with CNBC, the Bitcoin bull said the crypto industry experienced a bad year. Lee added that he expects 2023 to be better.
For now, news in the crypto world is all gloomy. Recent rumors suggest possible insolvency for Digital Currency Group and its subsidiaries. One of the firm’s subsidiaries, Genesis, has been scouting new capital from investors. However, their attempts to raise funds have not gone as per expectations.
Amid the hopeless situation, Tom Lee says next year would be better. Moreso, his firm, Fundstrat, remains optimistic about the future of the entire crypto industry.
Previous Bear Cycles Were Cleansing Time For Crypto Industry: Tom Lee
Lee compared the current meltdown to similar events that happened in 2018. According to him, many current big industry players developed during the previous bear cycle. He added that the previous downtime events were cleansing moments for the industry. To Lee, the current situation may serve as an opportunity to purge the crypto industry of bad players.
Therefore, he does not believe in the tale that crypto is dead but advises investors looking for a balanced portfolio to invest in Bitcoin. Meanwhile, BTC has declined by 1.22% in the last 24 hours. Bitcoin’s 24-hour trading volume is $24,911,415,512, and a live market cap of $310,602,232,159.
Ethereum, the second largest cryptocurrency, is down 2.72% in the last 24 hours and is currently trading at $1,161. It has a live market cap of $142,299,515,882.
Featured image from Pixabay, chart from TradingView.com
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