The end of 2022 arrives after a long and unnerving bear market. What is worse, the events that led to the bear market shocked the crypto world and put even more question marks on its sustainability.
The crypto market is now in a state of wait-and-see, between the possibility of a deeper crash and a tentative recovery. But, it may take months and a few important realizations before crypto markets get back on track and regain trust.
There have been many market crashes over the years, such as the securities and bond market, the dot-com stock market, the severe crash of real estate banking and property value, and now the cryptocurrency market.
All of these had very similar precursors, such as pie-in-the-sky insane profits with people getting rich overnight with little or no knowledge of the actual market itself or some sort of insider knowledge as to how to manipulate the system.
James Seaman
Finally, there were always, in the end, a few protagonists that took things to the next level, like Michael Milken and now the CEO of FTX, Sam Bankman-Fried. However, all of these markets recovered, and all of them started this recovery with more solid regulation, and while everyone still wants to make a profit, the crazy fever of getting rich quickly disappeared into a more paced and intelligent effort for long-term wealth.
The crypto market is entering such a stage because, after many ups and downs, the last two years saw the most dramatic bull market followed by high-profile meltdowns. A few factors must settle before investors feel confident again in using crypto as an investment tool or for another use case.
One of the first conditions to return trust to the crypto markets is for most stablecoins to retain their peg to the US dollar with minimal fluctuations. For now, USDC is a more reliable stablecoin, and we are observing attempts to exchange
