How Long Will Crypto Take to Recover? Crypto Winter Predictions
Crypto winter has been unforgiving to all. Even if you’ve been invested in Bitcoin, Ethereum, etc. prior to 2021, you know how many investors are feeling pain. So, how long will Crypto take to recover?
How Long Will Crypto Take to Recover?
Well first, we must define what recovery looks like. I’d argue that any price for Bitcoin around $37,500 would be a signal of recovery. Note, I am using this as a benchmark from where BTC was hovering in Summer of 2021, prior to its massive bull run.
The current price of Bitcoin is stuck around $16k, a long way to run before reclaiming the mid 30K range.
I’m using Bitcoin as the benchmark here because it basically serves as the ‘S&P 500’ of crypto. Or, a way to judge the overall landscape of computer coins.
It goes without saying that everything crypto-related is down bad.
Just ask Justin Bieber, whose Bored Ape NFT, is worth a fraction of his initial investment.
Justin Bieber purchased this Bored Ape NFT in January for $1.31 million.
Today, it’s worth $74,382. pic.twitter.com/ovG4hhv2cl
— Watcher.Guru (@WatcherGuru) November 17, 2022
However, are we really concerned about Biebs’ financial wellbeing? No, we are concerned for the retail investors like you and me, who are on the pursuit to financial freedom.
To determine how long crypto will take to recover, let’s use history as the first tool.
Bitcoin hit a high of $20,000 on Dec. 10, 2017. It decreased throughout 2018 and finally settled on a low of $3,500 in Feb. 2019.
No one can say for sure, but it appears that Bitcoin will go lower before getting back to being an attractive investment.
JPMorgan analysts see Bitcoin going as low as $13,000 before making a stable recovery.
Though, are we really taking their analysis of crypto as reputable? I listed it because it’s a theory I could see coming true.
Elon Musk himself thinks “crypto winter has a long way to go” before computer coins will eventually recover.
Musk also said in August that he expects the “mild recession” to last about 18 months.
18 months seems like a good rough target until things feel like they’re genuinely improving.
The bear-market rallies in each the stock and crypto markets have felt insincere thus far. Due to political drama, inflation, geopolitical tensions, etc. there don’t seem to be enough catalysts to drive people back to Bitcoin mania just yet.
Prediction: Bitcoin goes hyperbolic when Ron DeSantis makes his Presidential address in Feb. of 2024.
How long do YOU think crypto winter will last?
