Is Investing in Cryptocurrencies Worth It? This is a question that many new investors ask themselves, after all, when the market is down - like right now - it is normal for users to be full of uncertainties and doubts.
What to Expect from the Cryptocurrency Market?
06/19/2023
What to Expect from the Cryptocurrency Market in the Long Term? This is a topic that generates a lot of discussions, because no one can predict the future, but we can create theories about it!
What to Expect from the Cryptocurrency Market?
The Way of Bitcoin:
When we talk about What to Expect from the Cryptocurrency Market for both the short and long term, without a doubt, the first question that comes to mind is: where is Bitcoin going? After all, we know that in theory, all other cryptocurrencies follow this asset.
BTC is the main cryptocurrency on the market and it "dictates" where all altcoins will go. This is largely due to its market capitalization - which is much higher than Cardano, Dogecoin, Litecoin, Polygon... with the exception of Ethereum which is close behind.
Therefore, knowing that Bitcoin, in addition to being a digital currency, is also a Deflationary Decentralized Network, we can imagine that in the long term, be it 2025 or later, this asset will appreciate a lot. There are hypotheses that say that each unit of this asset could have a price above US$3 million.
In the short term, the macroeconomic scenario is uncertain, there is still not much clarity in the regulation of these assets and this "holds" the price of cryptocurrencies a little, because whether we like it or not, at the moment we are going through, Bitcoin still depends on of the Macro scenario.
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What About Altcoins?
Just as we said above that What to Expect from Bitcoin for the long term is High, so this high will also influence many other cryptocurrencies. But another point to keep in mind is that most Altcoins could go to zero in the Cryptocurrency Winter.
Therefore, it is important to be exposed to good assets and, most importantly: to have a sharp risk management in order to "survive" this market moment in a healthy way. Therefore, Bitcoin should always be your biggest exposure of your digital investments.
It may be presumptuous of us to recommend some altcoins for you to invest in, but what we recommend here is the following: give preference to cryptocurrencies that have - previously - survived bearish cycles. Be it Bitcoin, Ethereum, Litecoin...
And another extremely important point is: check if these assets, at each high cycle, form new historical tops! Bitcoin and Ethereum are two great examples of this.
So, what to expect from altcoins for the long term is that most projects will disappear, but if you invest with good risk management in the right projects, you can ride even higher than bitcoin.
What will be the next agenda?
This is a very interesting topic, but very interesting indeed! Back there, in one of the first bull cycles of cryptocurrencies, where there were few altcoins, the first theme that came as "hype" was the "payment cryptocurrencies". Where many of these altcoins came with the promise of being "better than bitcoin", because as we know, BTC in its base layer is slow for transactions.
As a result, the cryptocurrencies that came with this narrative, such as Litecoin and Bitcoin Cash, appreciated a lot against bitcoin - but this was in the short term. In the long run, Bitcoin always appreciates against any other cryptocurrency.
The second Hype was the DeFi theme: decentralized finance and protocols such as Uniswap, AAVE and Pancakeswap were highly valued! Then the theme of NFT's. Who doesn't remember Neymar's Monkeys?
The last wave we saw was the Metaverse, where companies like Facebook even changed their brand name to Meta. Cryptocurrencies such as Sand and Gala had massive gains with this market moment. Remembering that this does not mean that these themes cannot come with everything in the next cycles, because anything can happen in the crypto market!
There are those who say that the next topic will be Ethereum Scalability: protocols such as Polygon and Optimism may be highlighted in the next cycles, but remembering: this is just speculation, therefore, invest responsibly!
So, in the long term, What We Expect for the Cryptocurrency Market is nothing short of Bullish! Compared to Gold, Stock Market and Real Estate, we are still a very small fraction and, as we are in the Innovation niche, we can reap great rewards in the future if we invest in the right assets!
Lucas Lippe
The idea of freedom is fascinating and Bitcoin gives us that in many ways. Explaining ideas of a decentralized web on the Bitcoin Lovers website.
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Disclaimer:
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AMF Recommendations: There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of that savings. Do not invest if you are not willing to lose all or part of your capital.