The cryptocurrency market certainly took the world by storm as it raged from 2017 through to 2018. But as the subsequent bear market set itself in to the regulatory air, it may have felt like the glory days of crypto digital currencies had come and gone.
With 2018 now firmly in the past, investors are likely wondering if the time is right to begin investing in cryptocurrencies once more. While no one can make the call with certainty, by looking carefully at the past performance of the market both internally and wider, investors may be able to make a decision on whether they should jump back into the cryptocurrency bandwagon in 2023.
The 2017 Bull Market
The 2017 cryptocurrency bull market could be summed up in six words: the most powerful run ever. Throughout the entire year, the entire market recorded significant gains in terms of both prices of different cryptocurrencies as well as a rise in public interest for the digital currencies.
As 2017 came to a close, Bitcoin, the oldest and first cryptocurrency created, was trading in excess of $20,000, taking into account its all-time high of $20,089.00 hit on December 17, 2017. It was during this time in the market that prices of other cryptocurrencies also made theirs gains across the board.
Due to its age and its commitment in helping to bring about the cryptocurrency ecosystem, Bitcoin was the most dominant digital currency with an approximate market cap of $180 billion by the end of 2017. It was, however, followed by Ethereum, which recorded a market cap of $92.2 billion; Ripple, with a market cap of $50.2 billion; Bitcoin Cash, with a market cap of $32 billion; and then rounding out the list was Litecoin with a market cap of approximately $18 billion at the same time.
The 2018 Bear Market
Taking almost a complete 180-degree turn from its Bull Run in 2017 was 2018. It saw the entire cryptocurrency market fall drastically as the general public began to sour on the idea of cryptocurrencies.
The general sentiment in the air during the 2018 bear market was a mixture of fear and disappointment. Bitcoin’s price dropped from its peak at the end of 2017, down to an all-time low of $3,126.78 on December 15, 2018. This translated to the market leader’s price having dropped by more than 83%, erasing most of the profits earned in its 2017 bull run.
The same poor performance was across the board. Ethereum, Ripple, Bitcoin Cash and Litecoin also made major losses. Ethereum dropped from its all-time high of $1,448.69 to an all-time low of $83.63. The token Ripple, which had once recorded a market cap of $50.2 billion, now showed a market cap of $13 billion by the time 2019 began.
The Crypto Market in 2023
With 2018 behind us, investors are now likely wondering if they should try to get back into crypto. While trying to predict the future of the crypto market is impossible, by looking at past trends and patterns, investors may be able to make a decision as to whether investing in crypto in 2023 is right for them.
The crypto market appears to be on an upward trend for the new year. Bitcoin, for example, recorded all-time highs of more than $41,500 on January 8, 2021, with the market leader, at the time of writing, (January 26, 2023) trading in excess of $45,000. Ethereum has also seen steady growth and it currently trades above $1,400, from its all-time highs of $1,440, a gain of $1180 from its all-time lows of $113.
Around the entire cryptocurrency market, the gains are being enjoyed as a result of a mixture of both good news within the industry and institutional and retail investors venturing into the space.
In conclusion, while investing in crypto in 2023 may present a fantastic opportunity for long-term, strategic minded investors, always remember to do your own research, allocate funds which you are ok with losing, and finally, remain patient with your investments. Do so and you could just be a part of the next successful cryptocurrency bull run.
It all depends on your own individual risk appetite and financial goals. When investing in crypto, you should do your own research to determine what digital currencies best suit you.
Investing in crypto can be a unique and lucrative opportunity for investors, however, like any other financial products, you should invest responsibly and not leverage beyond what you can afford to lose. As with any other financial product, your investment strategy should be long-term in nature.
The crypto market is still in its infancy, thus the risk of investing in crypto at this time remains high; as such, investors should always be sure to carefully research any digital currency they are interested in before investing. Additionally, investors should only use funds they can afford to lose.